Sri Lanka has taken a significant step towards reviving its tourism industry by reinstating its original online visa application system. This move comes after a landmark Supreme Court ruling that effectively halted a controversial outsourcing deal with India-based VFS Global. The court found that the deal, which imposed a $25 visa processing fee on tourists, was not transparent and lacked proper authorization.
The government of newly elected President Anura Kumara Dissanayake swiftly implemented the court’s decision, signaling a commitment to restoring the tourism sector to its former glory. The reinstated online platform allows tourists to apply for visas without any additional fees, a move that is expected to attract more international visitors and boost the country’s economic recovery.
The $25 fee, implemented in April 2023 by the previous government, applied even to visitors from countries with visa-free agreements with Sri Lanka. This controversial move, which generated significant backlash, was projected to earn the consortium up to $2.75 billion over 16 years.
However, rights activists argued that the outsourcing deal discouraged tourism and lacked transparency. Their petition, brought to the Supreme Court, ultimately led to the contract being nullified and the original online visa system restored.
The decision comes at a crucial time for Sri Lanka, which is still recovering from the 2022 financial crisis. Tourism plays a vital role in the country’s economy, and the government is making concerted efforts to attract more visitors and diversify the tourism experience. The restored visa system is a key part of this strategy, making Sri Lanka more accessible and appealing to international travelers.
While facing various challenges, Sri Lanka’s tourism sector has shown promising signs of recovery. 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. This positive trend is expected to continue with the reinstatement of the original visa system, which is expected to further facilitate foreign travel.
Sri Lanka is also focusing on connecting more remote and unexplored regions of the country to attract tourists and distribute visitor traffic more evenly. This strategy will not only promote sustainable tourism but also bring economic benefits to local communities.
By taking these steps, Sri Lanka is sending a clear message to the world that it is open for business and ready to welcome back tourists. With the court’s ruling in place and a renewed focus on accessibility and transparency, Sri Lanka is poised for a brighter future in tourism, contributing to the country’s overall recovery and growth.
