Sri Lanka reverts to former visa system to woo tourists

After its highest court blocked a contentious multimillion-dollar arrangement that outsourced visa processing to a foreign consortium, Sri Lanka has reinstated an online portal for visa applications in an effort to boost tourism.

As the island nation’s economy struggles to emerge from the 2022 financial crisis, the administration of recently elected President Anura Kumara Dissanayake announced late Thursday that the action was taken to boost the important tourism sector.

Travelers can now apply for visas online without having to pay the $25 fee that India-based VFS Global, which was awarded an outsourcing contract by the previous government in April, was charging.

Human rights advocates had claimed in court that the consortium might have received up to $2.75 billion over a 16-year period if the contract had been awarded in an opaque manner.

In August, the Supreme Court of Sri Lanka mandated that immigration authorities return to the online platform that was in use before VFS was awarded the contract.

In a statement released on Thursday, Dissanayake’s office stated that “the visa facility provided by the VFS Global has caused significant difficulties for many,” adding that foreigners had encountered difficulties getting visas.

Harsha Ilukpitiya, the head of immigration, was detained on Wednesday for disregarding the ruling of the Supreme Court.

India’s GBS Technology Services and IVS Global FZCO, with VFS Global as a partner, were given the multimillion dollar contract by Ilukpitiya to handle visa applications starting in April.

The president’s office announced on Thursday that “we have initiated an immediate forensic audit to investigate the irregularities associated with the VFS Global.”

“Any discrepancies found will be subject to legal action.”

VFS in Sri Lanka has been approached by AFP for comment.

Even nationals of nations with visa-free travel agreements with Sri Lanka had to pay a $25 visa processing charge as part of the outsourcing agreement in order to visit the country.

According to central bank data, 1.19 million tourists visited the island in the first seven months of this year, a 56 percent increase from the same period in 2023.