Sri Lanka’s diaspora is spread far and wide, and the opportunities this creates are plenty. “The diaspora is not a monolith,” the Managing Partner of McKinsey & Company Sri Lanka Ganaka Herath clarified, on a recent LMD’s weekly digital TV programme.

“It’s very much like Sri Lanka: the diaspora has the same cultural diversity; the reasons why people have travelled overseas are numerous – they range from seeking economic and educational opportunities to reuniting with families,” he elaborated.

Herath noted: “There are about three million Sri Lankans living outside the country with concentrations in the Middle East (both skilled and unskilled workers), the US, Canada, the UK, Australia and Europe (covering France, Germany and Switzerland), and also in Southeast Asia – mainly Malaysia and Singapore.”

He believes that Sri Lankans living overseas are “tremendously valuable” to the country for many reasons: “When a country wants to develop, it needs tacit knowledge to be transferred in from outside.”

It isn’t that Sri Lanka doesn’t possess the people, knowledge and skills within but “infusions of knowledge” are beneficial, Herath maintained.

Herath continued: “The US, which is one of the most productive nations in the world, has about one in 10 individuals from outside the country. In Sri Lanka, this number is one in 500; and when we take the Indian population in our country out of this, the count falls to one in 10,000.”

“We have to begin thinking about what this number means for our country’s ability to renew ourselves from an economic perspective,” he urged.

The diaspora brings networking potential to Sri Lanka. “For instance, when you have people from the UK moving here, they understand the market in the United Kingdom – and have connections in that market,” he explained.

Herath stated: “They aren’t looking for quick returns and instead, wish to invest in the country and their families. And they have a much better understanding of the inherent risks of investment than anybody else out there who is looking only at our market or risk rating.”

If Sri Lanka is looking to encourage the diaspora to return to its shores, Herath highlights the need to consider a long-term plan that includes “improvements in the country’s policies and institutions, which will give people the confidence to return.”

“There should also be developments in various areas such as educational establishments,” he said, adding that although the island has “some fantastic universities, it needs more capacity.”

In addition to encouraging people to return, he stressed the importance of motivating the diaspora to engage with the country from wherever they are.

Herath noted: “When there is rapid migration, we always worry about brain drain and the skills gaps that form; but there is also a massive opportunity for the cadre of young employees in the country.”

There’s a need to encourage businesses and individuals in Sri Lanka to be open to collaborations with Sri Lankans living overseas.

The Managing Partner of McKinsey & Company Sri Lanka explained: “Sometimes we think that diaspora investment is a no-brainer but it’s not necessarily so. We need to foster understanding and communication because some people have real concerns such as whether they will lose their jobs or be displaced. Understanding those concerns and addressing them is crucial.”

“It’s also necessary to share some success stories so that people can see what benefits are available through collaboration with the diaspora,” he asserted. Herath noted that creating interconnectivity through forums, which enable people to come together, is needed.

There is much to be done to boost the confidence of the diaspora and other investors, and encourage them to engage with Sri Lanka. He prioritises ensuring that “the rule of law and transparency are the norm in the country, and not the exception.”