Business
Remittances to low and middle-income countries projected to rise by 4.2% in 2022
Oxford Business Group
As rising inflation and the global food crisis place financial pressure on many countries around the world, remittance flows to emerging markets are expected to continue to provide crucial support. In a recently released report, the World Bank’s Global Knowledge Partnership on Migration and Development (KNOMAD) estimated that global remittances to low- and middle-income countries (LMICs) will grow by 4.2% this year to $630bn.The figure builds on 8.6% growth in 2021 and follows two years that have highlighted the value of these inflows to many emerging markets.
Indeed, despite projections from the World Bank in April 2020 that the outbreak of Covid-19 would lead to a 19.7% contraction in year-end remittance flows to LMICs, they instead held firm and actually increased by 0.8% in 2020. These transfers took on greater importance as foreign direct investment (FDI) to LMICs fell by 13.5% in the same year.
In fact, remittances to LMICs in 2020 ($540bn) surpassed the equivalent value of FDI ($259bn) and overseas development assistance ($179bn) combined.In many instances these inflows provided people with a source of replacement income as Covid-19 curfews or restrictions significantly curtailed the ability of many people to work and earn, particularly those in the informal sector. Just as remittances proved crucial during the pandemic, they are also likely to be vital this year following Russia’s invasion of Ukraine and broader economic headwinds.
Rising inflation and the increase in food prices, which reached all-time highs across March and April, have significantly increased the cost of living in many countries and placed strain on many households, especially in emerging markets.
A continued flow of remittances would therefore be a welcome contribution to many emerging market economies: the UN’s International Fund for Agricultural Development (IFAD) estimates that 800m people globally benefit from remittances, which are often used to cover essential expenses such as groceries, medical care, school fees and housing. While KNOMAD predicts that remittances will follow the upward trend of recent years, it nevertheless expects the growth rate to slow as inflation erodes wages and Russia’s invasion of Ukraine places significant pressure on certain economies.There are also expected to be significant regional differences, much of which depends on the source country of the remittances and how those countries sending the remittances will be affected economically in 2022.
KNOMAD expects to see a 9.1% increase in remittances to Latin America and the Caribbean, followed by significant growth in flows to sub-Saharan Africa (7.1%), the Middle East and North Africa (6%), and South Asia (4.4%).
However, the report stated that remittances to Central Asian countries, for which the main source is Russia, are expected to fall dramatically amid the decline in the value of the rouble and sanctions on Russia.Under the estimates, remittances to Kyrgyzstan are forecast to fall by 32%, while those to Tajikistan (-22%), Azerbaijan (-21%), Uzbekistan (-21%), Armenia (-19%) and Kazakhstan (-19%) are also expected to experience significant contractions.
Just as strong remittance flows are expected to provide support to many emerging markets, such declines could have economic repercussions for those in Central Asia.World Bank figures show that remittances made up 31.3% of Kyrgyzstan’s GDP in 2020, compared to 26.7% in Tajikistan, 11.6% in Uzbekistan and 10.5% in Armenia.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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