Sri Lanka’s top court halts controversial visa outsourcing deal
COLOMBO, SRI LANKA — Sri Lanka’s Supreme Court recently ordered the suspension of the government’s plan to outsource visa processing to an India-based consortium.
The decision, announced last week, halts an agreement that was expected to generate billions of dollars over a 16-year period.
Opposition and tourism industry concerns
The outsourcing initiative, which began in April, faced strong opposition from various quarters, including opposition parties and Tourism Minister Harin Fernando.
Critics argued that privatizing the electronic travel authorization (ETA) process would deter tourists from visiting Sri Lanka. Despite these concerns, the government proceeded with the deal, contracting GBS Technology Services, IVS Global FZCO, and VFS Global as a technology partner.
Lack of transparency allegations
Petitioners who challenged the deal in court claimed that the contract was awarded without transparency and alleged that the foreign consortium stood to earn up to $2.75 billion.
They also highlighted that the new system required all foreigners, including those from visa-free countries, to pay a $25 processing fee.
Immediate impact on visa processing
Following the court’s injunction, the Immigration Department has been directed to revert to the previous system managed by the local telecom company SLT-Mobitel.
This interim order will remain effective until the court’s final determination, with the next hearing scheduled for October.
The suspension led to the temporary deactivation of the official e-visa website, with the Immigration Department announcing that tourists can now obtain visas through Sri Lanka’s overseas missions or on arrival at entry points.
Business visas, which were previously processed online, are currently suspended indefinitely.
Industry reactions and future steps
The travel and tourism industry, which had been critical of the new system, welcomed the court’s decision. The Sri Lanka Association of Inbound Tour Operators (SLAITO) and the Hotels Association of Sri Lanka (THASL) have updated their members and international partners about the changes.
They anticipate that the old ETA system will be operational within a week, allowing for smoother visa processing ahead of the peak tourist season starting in mid-August.
