Sri Lanka immigration chief arrested in visa outsourcing scandal

COLOMBO, SRI LANKA — Sri Lanka’s immigration chief, Harsha Ilukpitiya, was arrested on Wednesday after allegedly ignoring a Supreme Court order to annul a controversial visa processing contract.
This arrest is a significant development in the ongoing investigation into alleged corruption surrounding the outsourcing agreement.
Details of the controversial visa outsourcing contract
In April, the Sri Lankan government awarded a multimillion-dollar contract to an India-based consortium, including GBS Technology Services, IVS Global FZCO, and VFS Global as a technology partner.
This contract outsourced the processing of visas for foreigners entering Sri Lanka, imposing a $25 fee on all applicants, even those from countries with visa-free arrangements.
Critics argued that this move could deter tourists from visiting Sri Lanka due to the additional costs.
Supreme Court’s intervention and legal proceedings
In August, the Supreme Court intervened by issuing an injunction that temporarily suspended the outsourcing agreement. The court ordered the reinstatement of SLT-Mobitel, the local telecom provider previously responsible for visa processing.
Petitioners challenging the deal claimed that it was awarded without transparency and alleged that the foreign consortium stood to earn up to $2.75 billion over 16 years.
Harsha Ilukpitiya has been remanded until the Supreme Court completes its hearing on these allegations of corruption. The legal proceedings continue as stakeholders await further developments in this high-profile case.
Impact on Sri Lanka’s tourism sector
The controversy arises amid a significant increase in tourist arrivals to Sri Lanka. According to data from the Central Bank of Sri Lanka, 1.19 million tourists visited the island in the first seven months of this year, marking a 56% increase compared to the same period in 2023.
The tourism sector’s growth underscores concerns about potential deterrents caused by the new visa processing fees.
Broader implications for governance and transparency
This case highlights significant issues regarding transparency and governance within Sri Lanka’s public sector contracts. The arrest and subsequent legal actions have drawn attention both domestically and internationally, raising questions about accountability and ethical practices in government dealings.
The unfolding events surrounding Ilukpitiya’s arrest and the visa outsourcing scandal continue to be closely monitored as they have far-reaching implications for Sri Lanka’s governance and its tourism industry.