Sri Lanka has reinstated its online visa application system to encourage tourism following the suspension of a controversial outsourcing deal by the country’s Supreme Court. The move comes as part of efforts by the government under newly elected President Anura Kumara Dissanayake to revive the tourism sector, which is vital to the nation’s economy as it recovers from the 2022 financial crisis.
The restored platform allows tourists to apply for visas online without having to pay the $25 processing fee that had been imposed under an outsourcing contract awarded to India-based VFS Global in April by the previous government. The Supreme Court suspended the contract in August, citing transparency concerns raised by rights activists.
The contract, which had been awarded to VFS Global in partnership with India’s GBS Technology Services and IVS Global FZCO, had come under fire for allegedly being non-transparent. Activists argued that the consortium could potentially earn up to $2.75 billion over 16 years. Following the court’s ruling, the government reverted to the previous visa application system, which simplifies the process for tourists.
“The visa facility provided by VFS Global caused significant difficulties for many, with foreigners encountering challenges in obtaining visas,” President Dissanayake’s office stated in a press release.
In response to the controversy, Sri Lankan immigration authorities initiated a forensic audit to investigate the irregularities linked to the contract, with any discrepancies set to face legal action.
Meanwhile, Harsha Ilukpitiya, the head of the immigration department, was arrested for failing to comply with the court’s ruling. Ilukpitiya had previously awarded the multimillion-dollar contract to the consortium, which mandated a $25 visa processing fee for all foreign visitors, including those from visa-free countries.
Tourism remains a key focus for the Sri Lankan government, as the country saw a 56% increase in visitors in the first seven months of this year, with 1.19 million tourists arriving during that period, according to the central bank.
Efforts to streamline visa procedures and boost tourism are seen as critical for helping Sri Lanka’s economy recover from the financial turmoil it faced in 2022.
