Livelihood Development by Investing Remittances of Rural Expatriates Through Sampath Bank: A Case Study In Galewela

Abstract

Rural economy is another developing area. Rural people do not utilize these remittances for productive purposes as they are poor with low household income. In this study, utilization patterns of remittances by the rural beneficiaries, reasons for low investments with remittances as they mainly use this money for consumption, potential strategies to encourage the beneficiaries on livelihood development for their future wellbeing and some suggestions to enhance the investments of remittances on livelihood development were studied. This case study was done in Galewela based on Sampath Bank remittance beneficiaries as respondents. 40 Sampath Bank beneficiaries were selected purposively. Data were collected by using structured questionnaire and doing informal discussions with beneficiaries. Data were analyzed descriptively and statistically. Rural beneficiaries use remittances mainly for consumption. Other than that, they utilize on savings and housing. They were not satisfied with utilizing remittances on livelihood development due to low household income, poor private sector and government intervention, lack of guidance by the banks and unawareness of available livelihood opportunities. Agricultural investments, savings and small enterprises have the potential for the utilization of remittances as productive ways. In order to encourage the beneficiaries,: encourage women entrepreneurship, co-ordination of relevant authorities, special credit systems at a lower interest rate for housing, agriculture and education, micro-financing and encourage personal savings in banks were suggested for development of five livelihood capitals. Consumption is the main purpose of the rural beneficiaries for the utilization of remittances other than investing on livelihoods. Banks should play a special role to pursue the beneficiaries.