Colombo, September 27, 2024 — Sri Lanka has reinstated its original online visa application system, following a Supreme Court ruling that suspended a controversial outsourcing deal. The move, announced by the government of newly elected President Anura Kumara Dissanayake on Thursday, is aimed at boosting the tourism sector as the country continues to recover from the 2022 financial crisis.

The decision comes after the court halted a multimillion-dollar contract awarded to India-based VFS Global and its partners, which required tourists to pay a $25 visa processing fee. This fee, imposed in April 2023 under the previous government, applied even to visitors from countries with visa-free agreements with Sri Lanka. The contract was projected to earn the consortium up to $2.75 billion over 16 years, sparking allegations of a lack of transparency.

Rights activists brought the case to court, arguing that the outsourcing deal discouraged tourism and was not awarded through a transparent process. In August, Sri Lanka’s Supreme Court ruled in favor of the activists, ordering immigration authorities to revert to the pre-existing online visa platform. However, the immigration chief, Harsha Ilukpitiya, delayed compliance, leading to his arrest on Wednesday for failing to implement the court’s decision.

Tourism Growth Despite Challenges

Despite the controversy, Sri Lanka’s tourism sector has seen significant growth. According to central bank data, 1.19 million tourists visited the country in the first seven months of 2024, a 56% increase compared to the same period in 2023. The tourism industry is a vital component of Sri Lanka’s economy, and this restoration of the original visa system is expected to further facilitate foreign travel.

Boosting Accessibility for Tourists

By eliminating the $25 visa fee previously charged under the outsourcing deal, Sri Lanka aims to attract more international visitors. The restored visa platform allows tourists to apply for visas online without additional fees, a move welcomed by travel and tourism stakeholders. The government is also focusing on connecting more remote and unexplored regions of the country to unlock new tourism potential and distribute tourist traffic more evenly.

The restored visa system is part of broader efforts by the government to strengthen Sri Lanka’s tourism appeal and provide a more welcoming experience for visitors, particularly as the nation continues to rebuild its economy. With the court’s ruling now in place, Sri Lanka hopes to see continued growth in tourism numbers, contributing to the country’s recovery and future development.

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