-By: Special Correspondent
(Lanka-e-News -29.Oct.2024, 10.45 pm) A recent study by the Sri Lankan Diaspora Research Centre in London reveals the remarkable economic power of the Sri Lankan Tamil diaspora, who collectively command over $100 billion in assets and businesses worldwide. Spread across 91 countries, the Sri Lankan Tamil diaspora has established themselves as influential figures in various industries, from telecommunications and cinema to real estate, tourism, and finance. Despite their economic clout, however, efforts to attract investment from this prosperous community into Sri Lanka have faced notable challenges due to systemic barriers and reports of corruption.
The report details the diaspora's extensive footprint, with Tamil-owned businesses flourishing across continents. In Europe, North America, and Canada alone, Sri Lankan Tamil entrepreneurs own and operate over 500,000 shops, gas stations, nursing homes, estate agencies, and tourist hotels. Their ventures also span the technology and entertainment sectors, with ownership stakes in several high-profile telecommunications firms, film production companies, and even media outlets larger than any in Sri Lanka itself.
With around 15,000 Sri Lankan Tamil businesses actively operating on platforms such as Amazon, the diaspora has leveraged e-commerce to reach global consumers. Additionally, real estate investments are expanding into the Dominican Republic, where Tamil entrepreneurs cultivate fruits and vegetables similar to those grown in Sri Lanka, exporting them to Europe, Canada, and the United States.
The report also highlights the diaspora’s role in major sectors like shipping, airlines, and petroleum refining, further showcasing the diversity and depth of their business interests. Through these investments, the Sri Lankan Tamil diaspora contributes significantly to local economies worldwide.
Another key finding of the study is the diaspora’s contribution to India’s economy, reportedly accounting for 2.5% of the nation’s net exports. Tamil business owners play a vital role in the trade and export of products to their communities worldwide, with a significant portion of Sri Lankan food exports consumed by diaspora members. As a result, the diaspora community serves as a valuable market for Sri Lankan products and a bridge to connect Sri Lanka with global trade networks.
The demand for Sri Lankan goods within the Tamil diaspora community continues to grow, with an increasing number of suppliers specifically catering to this niche market. From spices to coconut products, Sri Lankan goods have become popular within the diaspora, reinforcing cultural connections even across continents.
Beyond commerce, the Tamil diaspora is renowned for its representation in the service sector. The study notes a high number of Sri Lankan Tamil professionals serving as accountants, bankers, financial advisors, doctors, and engineers worldwide. With 81 media firms owned by Sri Lankan Tamils—some larger than any Sri Lankan-based media outlets—the diaspora has a considerable influence over Tamil media and entertainment, helping to shape public opinion and preserve cultural heritage abroad.
The report emphasizes the diaspora’s presence in newer fields like the space industry, defense manufacturing, and diamond and jewelry trade. The study even identified 21 registered yacht owners and 36 private jet owners within the diaspora community, illustrating the economic diversity and wealth among this group.
These sectors, traditionally viewed as exclusive, are becoming more accessible to Tamil entrepreneurs, who are keen on expanding their investments in high-value and cutting-edge industries. Their participation not only elevates the Tamil diaspora's economic standing but also demonstrates their adaptability and forward-thinking business strategies.
Despite the diaspora’s remarkable financial success and potential to contribute to Sri Lanka’s economic development, the study underscores a significant barrier: systemic corruption within Sri Lanka’s investment processes. Diaspora members reportedly face a demand for bribes and other unethical practices, which deter them from investing in their home country.
One prominent Tamil business leader, for instance, was allegedly approached by Sri Lankan officials, including representatives of former President Ranil Wickremesinghe, who reportedly requested a payment of $20 million to facilitate the investment process. Similarly, members of the current opposition party have allegedly attempted to exploit their connections with high-ranking officials to secure approvals for diaspora-funded projects, demanding substantial fees in return.
These revelations highlight a longstanding issue within Sri Lanka’s investment climate, where individuals seeking to contribute to the national economy are often discouraged by corrupt practices and bureaucratic hurdles. Such practices threaten to alienate potential investors from the Tamil diaspora, who could otherwise bring substantial wealth and expertise to Sri Lanka.
The report advocates for the Sri Lankan government to take urgent action to address these barriers and create a more transparent, investor-friendly environment. By reforming its processes and ensuring accountability, the government could transform the diaspora’s willingness to invest, channeling a portion of the $100 billion in global assets held by the Tamil community into projects that could spur economic growth within Sri Lanka.
For instance, offering incentives such as tax breaks, easing regulatory procedures, and implementing strong anti-corruption measures could make Sri Lanka more attractive to diaspora investors. Such changes could potentially unlock investments across diverse industries, from technology and tourism to agriculture and renewable energy.
The Tamil diaspora’s success stories in other nations serve as examples of what could be achieved in Sri Lanka if the right policies were implemented. Developing stronger bilateral relationships with countries hosting large Tamil communities could also help facilitate investments and strengthen Sri Lanka’s ties with these nations.
Economic experts suggest that the government could benefit from establishing a dedicated body focused on diaspora engagement, specifically tasked with understanding and addressing the unique concerns and opportunities for diaspora investment. This organization could streamline processes, provide targeted support, and actively promote Sri Lanka as a destination for diaspora-led projects.
By fostering closer ties with the diaspora, the government could leverage the community’s wealth of knowledge and resources to advance Sri Lanka’s economic goals. Furthermore, such an initiative could foster goodwill among Tamil expatriates and rebuild trust, making it easier to engage the diaspora in projects that benefit Sri Lanka’s development.
The Sri Lankan Tamil diaspora has demonstrated resilience, adaptability, and ambition, building prosperous lives and businesses worldwide. However, Sri Lanka’s reluctance to address corruption within its investment processes means it risks missing out on a unique opportunity to harness this diaspora’s wealth and expertise for the nation’s benefit.
The findings of this report serve as a wake-up call for Sri Lankan policymakers. If the government can embrace reforms and work to dismantle the bureaucratic and ethical barriers currently in place, it stands to gain significantly from the economic power of the Tamil diaspora. By adopting a more open, ethical, and professional approach, Sri Lanka could encourage Tamil expatriates to look beyond local challenges and consider contributing to the country’s future.
The $100 billion commanded by the Sri Lankan Tamil diaspora isn’t merely a financial figure; it represents a potential lifeline for Sri Lanka’s economy at a time when external investments are critical. The diaspora’s proven success in global markets illustrates their potential to help elevate Sri Lanka’s economic position on the international stage.
In conclusion, this report by the Sri Lankan Diaspora Research Centre serves as both a testament to the Tamil diaspora’s achievements and a call for Sri Lanka to evolve. Should the government act on these findings, it could open the door to a new era of economic collaboration, transforming challenges into opportunities and building a stronger, more inclusive Sri Lankan economy for future generations.
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by (2024-10-29 18:05:24)
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