• 3,000 firms
  • Independent
  • Trusted
Save up to 70% on staff

News » Sri Lanka immigration chief arrested in visa outsourcing scandal

Sri Lanka immigration chief arrested in visa outsourcing scandal

sri-lanka-immigration-chief-arrested
Photo from Big Stock Photo

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.

Read more here.

Start your
journey today

  • Independent
  • Free
  • Transparent

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO)

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between Philippines outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 450+ podcast episodes, and a comprehensive directory with 4000+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

“Excellent service for outsourcing advice and expertise for my business.”

Learn more
Banner Image
Get 3 Free Quotes Verified Outsourcing Suppliers
3,000 firms.Just 2 minutes to complete.
SAVE UP TO
70% ON STAFF COSTS
Learn more

Connect with over 3,000 outsourcing services providers.

Banner Image

Transform your business with skilled offshore talent.

  • 3,000 firms
  • Simple
  • Transparent
Banner Image