Dr Sarath Obeysekera

Marine sector development in India and Sri Lanka is an area that needs urgent attention  right  now, Sri Lanka can either lose skilled labor to a Middle East pull, or deliberately position itself as the alternative regional shipbuilding power 

 Trying to stop workers from leaving the country is not practical in a democratic economy. Countries like India and Sri Lanka don’t succeed by restricting mobility—they succeed by making it more attractive to stay.

So the Prime Minister’s Modi’s  strategy has to be built around retention, attraction, and productivity, not control.

1. Turn the exodus risk” into a wage arbitrage advantage

After a Middle East conflict, yards in places like the Persian Gulf will indeed pay premium rates.

Instead of competing blindly:

• Offer tax-free income bands for marine sector workers
• Introduce foreign currency–linked salaries (partial USD payments)
• Allow workers to legally earn and retain foreign exchange

This narrows the gap without matching Gulf wages fully.

2. Fast-track a National Marine Skills Corps

You need scale, not just retention.

Create a structured pipeline:

• Expand welding, fabrication, and offshore training institutes
• Bring in certification aligned with International Maritime Organization standards
• Partner with Mazagon Dock Shipbuilders Limited to co-develop training academies

Key idea: produce 3 workers for every 1 that leaves.

3. Reform labor relations without confrontation

Sri Lankan unions are strong, and direct confrontation will backfire.

Instead:

• Move to productivity-linked wage models
• Introduce profit-sharing schemes at yards like Colombo Dockyard PLC
• Offer equity participation or bonus pools tied to export earnings

Make unions stakeholders, not adversaries.

4. Create a special marine economic zone

A standard BOI model won’t be enough.

Designate a Marine Industrial Zone around:

• Port of Colombo
• Trincomalee Harbour

Offer:

• Flexible labor laws (within limits)
• 24/7 operations without bureaucratic delays
• Duty-free import of equipment and materials

This improves productivity per worker, reducing dependence on sheer labor numbers.

5. Structured migration—not brain drain

Instead of losing workers permanently:

• Negotiate bilateral labor agreements with Gulf countries
• Ensure fixed-term contracts with return clauses
• Require skill upgrading before departure and after return

Turn migration into a circular system, not a one-way drain

6. Attract foreign skilled labor (yes, reverse the flow)

This is often ignored.

If there’s a shortage:

• Allow temporary Indian, Bangladeshi, or Filipino skilled workers
• Fast-track visas for marine engineers and welders
• Use this as a buffer during peak demand

7. Anchor geopolitical positioning carefully

If Sri Lanka wants naval superpower interest, it must avoid becoming a battleground.

Balance engagement with:

• India
• China
• United States

But keep marine infrastructure commercial-first, military-neutral where possible.

8. Mechanization and productivity leap

The uncomfortable truth: relying on manual welders alone is outdated.

Invest in:

• Robotic welding by initially concentrating on developing fillet welding in shops to reduce skilled welders because mass filter type welding is highest in shipbuilding 
• Mechanized pipe welding in the shops 
• Modular shipbuilding 
• Digital yard management

This reduces dependence on volatile labor markets.

Bottom line

If the government reacts defensively (trying to stop workers leaving or suppress unions), it will fail.

If it raises earning potential, increases supply of skills, and boosts productivity, Sri Lanka can actually benefit from the Middle East disruption and become a secondary hub to the Gulf and India.

Regards

Dr Sarath Obeysekera