Understanding Tamil diaspora and

their involvement in developing the

north

Friday, 19 May 2017

Diaspora is defined as the dispersion of people from their
traditional homelands. There could be over 1.2 million Sri Lankan
Tamils living in various parts of the world. The majority of Sri
Lankan Tamils fled the country due to political and economic
reasons. The number of Sri Lankan Tamils living abroad is even
greater than the Tamils currently residing in the Northern
Province.

Tamil diaspora shaped the Sri Lankan political landscape through

its financial and ideological support during the military struggle.
Subsequently the term Tamil diaspora was associated with a
negative connotation amongst majority of Sri Lankans. It was also
perceived that the Tamils residing abroad had immense financial
capacity and cared more about the Tamils residing locally.

Eight long years have passed since the end of the war and three
years of Yahapalanaya (Good Governance) yet the diaspora
seems sceptical about the happenings in Sri Lanka. Currently the
diasporas comeback is most anticipated, yet they seem to be
missing from the development agenda. Disappointments and
frustrations are brewing internally, as diaspora lacks any interest
to invest their hard-earned money into northern development.

At this crucial juncture, its vital to have a detailed understanding

about the diasporas motives, potentials and barriers faced by
them, regarding investments in north and east.
Segments of

Tamil diaspora

The Sri Lankan Tamil diaspora population is vastly spread

across numerous countries, Canada, UK and France with
significant concentrations. Prior to 1983, only a small number of
Tamils left the country, largely due to professional and economic
gains.
However, post 1983 the scenario changed and a large number of
people started fleeing the country to escape the ethnic issues and
civil war. Tamil diaspora population can be classified into three
broad segments based on the period of migration. There could be
few exceptions, but the intention is to give an overview about
their profiles, especially regarding, investment capacity and
likelihood of returning to the north.

Early leavers: the initial group which migrated during the

1980-90s are the wealthy and affluent segment, working as
professionals or in decent jobs within their host countries. This
segment left early before the war intensified as they were already
well-off, had connections abroad and wanted to secure a peaceful
life. Now, they would be around 50-60 years of age and have
established themselves within their respective host countries.
Currently they have few/no connections in Sri Lanka.

Forced leavers: This segment was forced to leave the country

during the 1990-2000s as the civil war intensified. The group was
interdependent on each other, as the first to leave had to help
his/her family members migrate. They found any means, even
illegal avenues to escape from their home land which was rapidly
transforming into a war field. This segment was largely
unprepared and didnt have proper education/qualifications during
the time of migration. As a result, forced leavers suffered the
most within both their home and host countries. Upon their arrival
in the host country, some started working on their own sole
proprietor business whilst others found employment in less
skilled/blue collar jobs. Once settled, suitable marriage partners
with similar background looking for opportunities to leave the
country were sourced from north. Most of them are in the age
group of 40-50 years of age currently.

Peer-pressure leavers: Migrated after2000. Tight procedures were

in place during this time to prevent illegal migration and people
started looking for alternate avenues, such as student/sponsor
visas. This segment possessed fair educational/professional
qualification, prior to migrating. They extended visas and secured
employment upon completion of their higher education in host
countries. Currently, they are at an early stage regarding
profession, family life and trying hard to establish themselves
within the respective countries they call home now.
Understanding diasporas hierarchy of financial
contribution
Contrary to local belief, diaspora do not possess abundant
financial capacity. Most importantly, they too have their own
demanding priorities and commitments.

If observed closely, diasporas financial contribution to Sri Lanka

can be summarised into a hierarchical order. The first stage of
financial contribution came in the form of remittances sent to
family members. The second stage includes rebuilding their
belongings (renovating homes affected due to war) and acquiring
assets for themselves in Colombo and the north. Only when these
two stages are fulfilled, would the diaspora seek to invest in
northern development to sustain their status quo.
Stage 1: Remittance

to family members
Diasporas remittance contribution to the northern economy is
significant. More than one-third of the houses obtained monthly
remittance from the diaspora, backing up the excessive
consumption capacity of the families residing in north. They have
significantly contributed to meet the familys household
expenses, rebuild ancestral properties, purchase household
equipment, vehicles, etc. There have been criticisms regarding
the households easy access to money through remittance, as it
has been one of the reasons for northern youth to not engage in
any employment/employment creation.
Stage 2: Owning an assets for themselves
A fraction of diaspora is investing efforts towards obtaining dual
citizenship, mainly with the intention to purchase a property for
investment and retirement purposes. The Department of
Immigration and Emigration claims the Government of Sri Lanka
has provided over 20,000 dual citizenships so far. Over the past
few years, the diaspora has heavily contributed to the
construction and real estate boom in Sri Lanka.
Stage 3: Looking for investments
Diaspora would start looking for investment opportunities in Sri
Lanka once their basic commitments/desires such as acquiring
assets are fulfilled. Such types of people should be tapped to
access the opportunity to translate the diaspora into potential
investors. If an appropriate and reliable investment climate exists,
the diaspora would look for further investment opportunities to
meet their self-actualisation needs.
Understanding

the barriers
The diasporas investment interest is rather a complex situation,
where they could be motivated with a mix of both financial and
non-financial related components. The motivation to invest could
be subdivided into Financial, emotional, political and social status
related aspects.
Financial: Lack of money for investment
The diaspora has been unrealistically perceived as a segment
holding massive wealth within their host countries. However,
large proportions are struggling to provide continuous financial
support for their family members residing in the north.

As highlighted previously, the early and forced leavers could have

the financial capability to invest. However, whether they have
such an intention is questionable.

Peer-pressure leavers could adapt well within the growing tech

start-up culture and provide intellectual support rather than a
financial one. They can easily play a catalyst role in terms of
transforming startups.
Emotional/social

status related: Lack

of intention to return
The popular belief that diaspora would permanently return one
fine day remains as an illusion. Even diaspora plans of returning
home as part of post-retirement plan might just remain a dream.
As their generations are deep-rooted in the host country they
increasingly feel a sense of disconnection as majority of their
relatives/friends arent residing in Sri Lanka anymore. The
diaspora residing in Western countries would not leave their host
countries just like over 150,000 Sri Lankan Tamil diaspora residing
in India, mainly in concentration/refugee camps. As they have
become connected and started to accept their host countries as
their own homeland.
Unstable political environment
The diaspora is also concerned about the political stability of the
country just like any other investor. In addition to that, they are
cautious about recovering investment and considering the risks
involved. They have strong negative sentiments on political
factors, as they once left the country empty-handed.
Lack of a formal structure to promote investment
Its a common scenario where Government/Provincial Council
invites a group of potential investors for discussions, investment
forums, followed by visit around Jaffna. However, the happenings
beyond this point remain a mystery. Are these potential investors
converted into investors? Are there any follow-ups? What are the
KPIs established and achieved? Its difficult to assess whether the
potential investors are willing to proceed with next steps and
establish without a formalised structure in place.
Second generation diaspora
Besides the three key segments explained above, the second
generation diaspora are increasingly concerned and interested in
participating in the north and east development agenda. This
group was born in or grew up in their host countries. Even though
they are citizens of other nations, they have an emotional connect
and desire to make an impact to help develop the north and east.
Second generation diaspora is highly unlikely to return to Sri
Lanka yet their intellectual contribution and the strong network of
professionals can help rebuild the livelihoods of Tamils in Sri
Lanka.
Way forward
Harnessing the power of diaspora for the national development is
essential for a country like Sri Lanka. The National and provincial
government are organising events, investor forums, etc. in
isolation to attract diaspora investments. These initiatives arent
sufficient and fail to provide a comprehensive picture, thus
resulting in limited impact.

All the efforts need to be integrated, with proper KPIs in place to

measure progress effectively. Various countries around the world
have a large diaspora population; tried and tested models to
engage diaspora to the development of the country could be
implemented. Sri Lanka certainly needs to have a rigorous
approach towards attracting the diaspora for the development of
the Northern Province.

(The writer is a Market Research expert specialised in demand-

side estimation and segmenting consumers. He is the Head of
Research at Sparkwinn, a market research agency specialised in
studying consumer and social issues in Sri Lanka. He can be
contacted through suthaharan@sparkwinn.com.)
Posted by Thavam