Lanka ORIX Finance & IFAD Help Manage Foreign Currency Remittances of Migrant Worker Families

25th February 2012, www.island.lk

Lanka ORIX Finance (LOFC), a financial institution with one of the largest deposit bases in the Registered Finance Company sector, entered into a landmark partnership with the International Fund for Agricultural Development (IFAD) headquartered in Rome, Italy to implement a special program to uplift the living standards of rural poor in Sri Lanka by conducting a series of educational programs.

The aim of the initiative is to raise awareness among migrant worker families on meaningful financial management and investment, they hope to economically empower rural Sri Lankans who seek foreign employment through financial inclusion. Migrant workers are given assistance in setting financial goals through special training programs and thereafter guidance and support to achieve same.

"The aim of doing this project is Economic Prosperity for Rural Poor through Remittances Disbursed via Lanka ORIX Finance" says, Mr. Brindley de Zylva, Managing Director/CEO.

Explaining the benefits behind this program Mr. de Zylva added, "This program will offer them a free life insurance cover though the Insurance arm of the Group, LOLC Insurance Company Ltd which will cover any unexpected visits back home in case of a bereavement of an immediate family member or on loss of employment of the Migrant Worker. "

Similarly, the company has linked with LOLC Micro Credit Company Ltd to offer micro loans for income generating activities to reduce the dependence on remittances and ensure a source of sustainable income hastening the return journey of the migrant worker.

In order to ensure that their remittances reach their loved ones safely back home, LOFC has partnered exchange houses such as Xpress Money, Valutrans and Money Exchange – Spain. Lanka ORIX Finance is the only non-banking institution in Sri Lanka to have joined the SWIFT network and be listed in the Bankers Almanac.

Adding further Mr. de Zylva said, "Since launching our Fixed Deposit schemes and our new value additions for Foreign Currency Business, we have attracted many Sri Lankans with investments in Foreign Banks to place these deposits with us. This is a testimony to the strength and stability of LOFC. We also offer better returns for their investments and value added benefits in Sri Lanka."

Senior Citizens are given special treatment with higher interest rates and an emergency medical scheme covered by a strategic alliance with Medicalls.

Nearing a decade of experience as a RFC, Lanka ORIX Finance is the only Finance Company backed by a global financial giant, the ORIX Corporation of Japan and the first/only RFC authorized by the Central Bank of Sri Lanka to engage in foreign currency business. At present, the Company has an island wide presence through its footprint of over 50 branches strategically located at various parts of the island.

Related Info :• Asia Microfinance Forum 2010 in Colombo, Sri Lanka from 12-15 October Sponsored by LOLC

Sampath Bank Launches M2SL Money2SriLanka Online Money Transfer Facility with ICICI Bank of India

11th May 2011, www.lankabusinessonline.com

ICICI Bank, India's largest private sector bank, has tied up with Sri Lanka's Sampath Bank to launch an online cross-border money transfer facility.

The 'Money2SriLanka' facility ('M2SL') is a web-based online remittance platform which facilitates the sending of remittances from abroad to beneficiaries in Sri Lanka, a statement said.

This service will be piloted in Canada and the United Kingdom and will shortly be rolled out in Australia, USA, South East Asia and the Euro zone in the second phase.

The remittance received through M2SL is available for account holders of ICICI Bank Sri Lanka and Sampath Bank instantly on the day of receipt of funds in Sri Lanka.

Remittances received on behalf of account holders of other banks in Sri Lanka will be disbursed via Sri Lanka Interbank Payment system with the same day value, subject to cut off timings for processing of the payments.

"One of the important features of this facility is the availability of an online tracking system to trace the status of a transaction from the point of initiation up to the point of payment to the beneficiary," the statement said.

ICICI Bank has been one of the leading players in the Indian remittance market and its proprietary online portal, Money2India.com has proven to be a breakthrough in mobilizing remittances into the Indian market, it said.

"The Money2India.com product goes beyond the traditional offerings in the banking sector by saving significant costs associated with traditional money transfer methods."

Image: Sampath Bank ties up with ICICI Bank oo an online cross-border money transfer facility to Sri Lanka (Image Courtesy: www.news360.lk)

Related Info :

• Sampath Bank to Offer mCommerce Solution with Enhanced Security and User Friendliness. Internet Payment Gateway Leader to Reach the Unbanked

Sri Lanka's Bank of Ceylon Foreign Remittance Receipts up by 23pct in April 2010

21st May 2010, www.lankabusinessonline.com

Inward remittances handled by Sri Lanka's Bank of Ceylon (BOC) rose 22.7 percent in April 2010 despite other private commercial banks eating into its market share, a senior official said. "We see that our inward remittances are growing because people are sending hard currencies for savings and investments," Gamini Wickramasinghe, chairman of BOC told LBO.

"The blue collar workers are remitting more to increase their savings and investments."

Inward remittances through the bank have been rising every month since the beginning of this year.

In March they were up 24.4 percent to 16.3 billion rupees and in April rose 22.7 percent to 16.2 billion rupees from the previous year, Wickramasinghe said.

State-owned BOC is Sri Lanka's largest commercial bank.

In 2009 the bank received nearly 1.6 billion dollars in foreign remittances.

However, despite the good run BOC's inward remittances market share has steadily eroded because of fierce competition from private banks, Wickramasinghe said.

In 2008 BOC's market share was over 50 percent, but a year later had dipped under 50 percent, Wickramasinghe said.

"Everyone is fighting to increase market share," Wickramasinghe said. "The competition is stiff and we (BOC) are formulating new strategies to maintain market share."

He said BOC has introduced a pension scheme linked to remittances to attract more migrant workers to use the bank to remit their money home and encourage existing customers to stay with the bank.

Part of the remittances will be deducted monthly and put in a separate account from which money can be withdraw after workers retire at 55 years.

Most expatriate workers, despite working for years abroad, hardly save anything when they return to Sri Lanka, Wickramasinghe said.

"We are targeting our pensions scheme for the blue color workers as most of them when they retire they don't get pension," Wickramasinghe said.

Nearly 7.5 percent of Sri Lanka's 20 million population work mostly in blue collar jobs in Gulf states like Saudi Arabia, Oman, Qatar, Dubai, Lebanon and Syria.