A fortnight after Sri Lanka switched to a new visa issuance system, authorities are facing a backlash over higher visa fees that could deter tourists, “Indian involvement” and “corruption” in the efforts of the concerned minister to outsource visa processing.
From April 17, 2024, the Sri Lankan Ministry of Immigration and Emigration directed travelers to a new visa portal, operated by VFS Global, for online visa applications under various categories. The previously used Electronic Travel Authorization system, known for its speed and accessibility, was scrapped.
The move followed a cabinet decision last year, based on a proposal by Public Security Minister Tiran Alles, to appoint GBS Technology Services & IVS Global – FZCO and VFS Global as authorized agents for online visa application submission for foreigners entering Sri Visit Lanka. The three companies then formed a consortium and signed an agreement with Sri Lankan authorities, officials said.
With the introduction of the new system, Sri Lanka visas have almost doubled, along with the introduction of an $18.5 service fee and $5 convenience fee charged by VFS Global. Even as users pointed out the lack of a single-entry, 30-day tourist visa option, a recent video recording of a visiting Sri Lankan complaining that ‘Indians’ were handling visa issuance at Colombo’s Bandaranaike International Airport led to a new controversy. The angry man’s video clip went viral, prompting the Indian High Commission in Colombo to clarify that the companies involved “are not Indian-based or Indian and have their headquarters elsewhere.” “Any reference to India in this context is unfounded,” a May 2 statement said.
GBS Technology Services is based in Singapore and partners with IVS Global Services, a company founded in Maharashtra in 2010. IVS is now a global provider of outsourcing and technology services and also processes Indian visa applications from Sri Lankans. Founded in India in 2001, VFS Global is currently headquartered in Zurich and Dubai, and was acquired by US private equity firm Blackstone in 2021.
Those in Sri Lanka’s crucial tourism sector see the steep increase in visa costs at odds with the government’s stated aim of boosting tourist numbers. “From an industry perspective, we have no problem choosing a technologically advanced system. But we don’t understand why the old system, which was simple and effective, is being replaced with much higher costs for visitors,” said Nishad Wijetunga, chairman of the Sri Lanka Association of Inbound Tour Operators. Along with other industry representatives, he recently wrote to President Ranil Wickremesinghe, urging him to intervene and restore “a competitive, user-friendly visa process through a government-run website” to maintain “positive momentum” in to sustain the country’s tourism sector. .
While the Sri Lankan media went to town over the weekend with the “visa fiasco”, opposition leader Sajith Premadasa took to social media platform ‘X’ on Monday to challenge the government’s decision. “What were the factors that led to choosing VFS at USD 25.77 instead of USD 1 per arrival when cabinet papers were submitted for VFS selection? [state-owned telecom’s] SLT Mobile offered?” he asked.
At a media conference on Monday, Public Security Minister Tiran Alles defended the move, saying the new visa fees were still lower than what some other countries charged. “VFS cannot issue or refuse visas. They can only check the documentation,” he said, adding that the company was “not Indian”. Mr Alles denied any corruption in finalizing the deal with the consortium.
Impact on Indian tourists
Meanwhile, Indian tourists, who have consistently topped Sri Lanka’s arrival lists – 3,02,844 or 20% of total arrivals in 2023 – have encountered a curious problem in navigating the new system.
In an effort to encourage tourism and revive the island’s crisis-hit economy, Sri Lanka in October 2023 waived visa fees for tourists from India and six other countries: China, Russia, Thailand, Indonesia , Malaysia and Japan. The scheme has now been extended. Moreover, Sri Lankan Tourism Minister Harin Fernando is organizing roadshows in India, asking tourists to come in large numbers.
However, despite being eligible for a “free visa”, Indians have to pay almost $23 just for service and convenience fees. “If they tell us this is the visa fee, that’s one thing. But when you are told that the visa is free and then you are charged for it, you are put off,” says Nadeem Sheikh, owner of a travel company in New Delhi, who recently applied for a Sri Lanka visa online.
The Travel Agents Association of India (TAAI) held its 67th convention in Colombo last year and pledged to forge key partnerships to revive the island’s tourism sector. “We have always advocated free visas in the region, with a reciprocal arrangement with India. Ease of travel and value for money make a huge difference to tourist numbers,” said association president Jyoti Mayal The Hindu. “Sri Lanka has worked very hard to revive the country’s tourism industry and economy,” she said.
