Thiruvananthapuram: The Kerala Cabinet has decided to dissolve the World Kerala Sabha, or Loka Kerala Sabha, and introduce an alternative mechanism to address the welfare and other concerns of expatriate Keralites, Chief Minister V D Satheesan said on Wednesday.

The decision was announced at a press conference following the Cabinet meeting on Wednesday.

According to the Chief Minister, the government plans to adopt a new approach to issues concerning the Malayali diaspora, with greater emphasis on converting Kerala's remittance-driven economy into one based on investments.

A sub-committee chaired by the Chief Minister has been constituted to oversee projects aimed at facilitating this transition. The committee includes the Ministers for Industries, Engineering, Health and Irrigation.

The proposed mechanism is expected to focus on channelising the financial resources and expertise of expatriate Keralites towards productive investments and development projects in the State.

The Loka Kerala Sabha was launched in 2018 as a platform to bring together Malayalis living across the world and provide an interface between the diaspora and the Kerala government. It was conceived as an advisory forum rather than a legislative body. The Sabha has 351 members, including MLAs, MPs representing Kerala and nominated representatives of non-resident Keralites.

The forum was also envisaged as a platform to discuss the problems faced by expatriates and explore ways to use their investments for Kerala's development. At its launch, the then Chief Minister Pinarayi Vijayan had highlighted the need to move expatriate remittances into productive sectors, noting that a significant portion of remittances was being used in non-productive areas.

Over the years, the Sabha held four editions and generated recommendations covering expatriate welfare, investment, migration, employment and rehabilitation of returnees.

However, the implementation of recommendations became a point of criticism. An RTI-based report in 2023 found that only 58 of the 138 suggestions from the second Loka Kerala Sabha had seen action, while several others were either rejected, under consideration or forwarded to the Centre.

UDF government's changing position
The decision to replace the Sabha comes shortly after the present UDF government had decided to allow the forum to continue for the new financial year.

On September 21, the government had granted administrative sanction of up to ₹2 crore for implementing recommendations from the previous session and meeting administrative expenses. It had also sanctioned ₹1 crore each for the Pravasi Mission and the Sherpa project, which was intended to assist non-resident investors.

The UDF had earlier boycotted the Loka Kerala Sabha while in Opposition, raising concerns over its expenditure and functioning. After assuming office, however, the government had indicated that it was not opposed to having a platform for expatriates but wanted structural changes and did not want it to impose an additional financial burden.

The latest Cabinet decision therefore marks a shift from continuing the existing Sabha to creating a different institutional mechanism for dealing with expatriate affairs.

The government has now indicated that the focus will be on moving beyond a forum-based approach and creating mechanisms that can address expatriate welfare while also encouraging investment and economic participation in Kerala.