The setting up the Sri Lanka Bureau of Foreign Employment in 1985 as a one stop agency to administer foreign employment was a major step in promoting and regulating labour migration. The open economy reforms in the early 70s coupled with the surge of labour migration to the Middle East region necessitated such an institution to cope with the many issues which surfaced. Migration was triggered by several factors, such as the easing of foreign travel, setting up of recruiting agencies, and most importantly poverty. Such migration impacted on the domestic labour market to some extent, as it absorbed local workers. Migration also did not cater to the educated unemployed youth. However, several positive effects on the labour market were seen. There is now an urgent need for the implementation of the regulatory framework and policies for labour migration which have already been laid out, in compliance with international regulations.Blurb Source- Institute of policy studies Sri Lanka- http://med-mig.ips.lk/handle/789/31