Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe recently stated that only the sectors that earn foreign exchange will survive the economic downturn, while urging other businesses to use the current crisis as an opportunity to transform themselves into foreign exchange-earning businesses.
He has a valid point – Sri Lanka’s economic recovery largely depends on the country’s foreign exchange-earning businesses, and the need to support and promote such businesses is immensely important. However, given the fact that a considerable segment of export businesses have been affected by the economic crisis, the country has to accept that it cannot rely solely on traditional export businesses and therefore has to pay attention to modern methods.
One effective but rather new method of earning foreign exchange is online businesses and working opportunities, which are becoming quite popular in Sri Lanka as well. Such opportunities have evolved rapidly, and are now as legitimate as any physical business or working opportunity. Among these are online platforms that facilitate financial investments, the sale of goods, and employment. The advantages of such ventures include high profits and income due to the Sri Lankan rupee depreciating against the US dollar, the ability to work with international employers without having to migrate, and the exposure to advanced and modern working and trading environments, which could improve Sri Lankans’ lives.
Promoting such businesses and working opportunities will certainly be helpful in saving the country’s information technology (IT)-literate youth from racketeers as well. As was reported by The Morning earlier, during the past two years, a number of self-proclaimed IT experts and institutions with no legal registration started promoting high-risk online gambling, businesses, and investment platforms as high-profit businesses and working opportunities. In addition, new forms of pyramid schemes have been on the rise since early this year.
The worst part of this situation is that the people’s tendency to be duped by such schemes has increased with the economic hardships experienced during the past few months, and youth take a special place among them. Many youth have joined these schemes with limited understanding about the financial risks they involve and the legality of some of the institutions that promote such schemes.
In this context, promoting and also supporting the people to join legitimate online businesses and working opportunities could not only improve the economy of the country and the economy of the youth, but it could also save the people from racketeers seeking to take unfair advantage of the prevailing dire economic situation. However, the promotion of such opportunities is not enough. Sri Lanka is yet to remove legal barriers that have impacted a number of online payment methods and digital wallets, resulting in many people storing their foreign exchange in digital wallets that are not monitored by the local authorities. In addition, removing or reducing any taxes imposed on online transactions or earnings, especially those involving US dollars, would be a great encouragement for Sri Lankans aspiring to work or do business online.
The authorities could play a greater role in promoting such legitimate opportunities, and it does not require a financial investment that the Government cannot bear. Raising awareness could even begin from including online work and business-related knowledge in the school curricula of students of higher grades. Foreseeing that survival will require earning foreign exchange is one thing; the authorities must take measures to support the public to adapt and ensure their survival.