In April, Sri Lanka’s Department of Immigration and Emigration transitioned to a new visa portal managed by a consortium including GBS Technology Services, the India-registered IVS Global Services, and VFS Global. However, on August 2, Sri Lanka’s Supreme Court issued an interim order suspending the government’s new visa scheme amid allegations of corruption exceeding a billion dollars. The court directed the restoration of the previously used online visa system.
The original Electronic Travel Authorisation system, operated by the state-run telecom provider Mobitel, was discontinued despite its reputation for speed and efficiency. The new system, run by the aforementioned consortium, significantly increased visa costs for Sri Lankan tourists, raising concerns within the island nation’s crucial tourism sector. Industry representatives feared that these higher costs could deter tourists, especially as the country was beginning to see a resurgence in arrivals following the pandemic and the economic crisis of 2022.
The controversy gained media attention in May when a video of a Sri Lankan traveler criticizing the presence of “Indians” at the on-arrival visa counter at Bandaranaike International Airport went viral. Following this, opposition parliamentarians Champika Ranawaka, Rauf Hakeem, and M.A. Sumanthiran filed a case in the Supreme Court against the Minister of Public Security, Tiran Alles, and the government led by Ranil Wickremesinghe, accusing them of facilitating a multibillion-dollar scam related to the IVS visa procedure. In his petition, Mr. Sumanthiran argued that while the financial returns to Sri Lanka would be minimal, the project would allow GBS Technology Services & IVS Global – FZCO and VF Worldwide Holdings to profit approximately $1.4 billion. Transparency International Sri Lanka and tourism industry representatives also joined the legal challenge. The case is set to be heard again in October.
Following the court’s order, the old visa system must be reinstated immediately. As of August 3, the new visa portal had been suspended. “Currently, there is no online visa option available. Visitors can only use the visa on arrival counter at Colombo airport. Restoring the old system without delay is in everyone’s best interest,” stated Nishad Wijetunga, president of the Sri Lanka Association of Inbound Tour Operators. Attempts to contact Sri Lanka’s Tourism Minister and the Department of Immigration and Emigration for comment on August 3 were unsuccessful.
Between January and June this year, Sri Lanka recorded over one million tourist arrivals, generating nearly $1.5 billion in revenue, according to official data.
