Sri Lanka’s long-promised visa-free travel scheme for 33 additional countries has been hit by fresh delays, revealing deeper issues in policy consistency, administrative inefficiency, and questionable deals involving the country’s visa processing system. The scheme intended to expand visa-free entry to 40 nations to boost tourism has been stalled for months as the Attorney General’s Department examines lingering legal complications tied to a controversial private visa management deal.
Tourism and Foreign Affairs Minister Vijitha Herath admitted this week that implementation remains pending “until the Attorney General provides clearance,” citing unresolved legal questions about revenue sharing and system management. “We have to submit a new gazette to Parliament, and we expect to finalize the process within one or two months,” he told reporters at the weekly Cabinet briefing.
However, the Attorney General’s review reportedly stems from an ongoing case related to a deal signed last year with VFS, IVS, and GBS, private firms contracted to handle online visa applications. The contract was later suspended by court in August 2024 following allegations of inflated fees, lack of transparency, and non-remittance of state revenue. A special audit by the Auditor General found that portions of income due to the Treasury had not been properly accounted for under the system, raising questions about oversight and governance.
The controversy has complicated the government’s efforts to relaunch a clean, transparent visa process. Prior to the VFS arrangement, visa fees had already been increased sharply, drawing criticism from tourism operators who said higher costs discouraged short-term travelers.
Under the proposed new free-visa system, only citizens of China, India, Indonesia, Japan, Malaysia, Russia, and Thailand currently enjoy exemption from the Electronic Travel Authorization (ETA) fee. The government announced in July 2025 that it would expand this list to include 33 more countries, mainly in Europe and the Middle East. Yet, months later, tourists from those nations still face standard visa fees.
Industry experts warn that the delay undermines Sri Lanka’s competitiveness as a destination in a region where rivals like Thailand, Malaysia, and the Maldives have aggressively eased entry requirements to capture post-pandemic travel demand. “At a time when every dollar counts, the delay in implementing a zero-fee visa system is costing us tourists and revenue,” a senior tourism official told this paper.
The prolonged legal and policy confusion also highlights the government’s mixed signals on foreign investment and public-private partnerships. Analysts argue that the failure to swiftly resolve the visa outsourcing scandal has created uncertainty across agencies.
As Sri Lanka battles to revive its crisis-hit economy, the free visa plan originally pitched as a quick win to attract foreign exchange is now emblematic of policy paralysis and bureaucratic inertia. Until the government restores clarity and accountability in its visa policy, the promised tourism revival may remain trapped in paperwork.
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