The cost to obtain a short-term visa to visit Sri Lanka rose from $50 to $100 in April.
But the reason for it is disputed.
The price hike followed Sri Lanka’s transition from using internal Electronic Travel Authorizations, or ETAs, to an e-visa system operated by the visa processing company VFS Global.
Sri Lanka’s Tourism Minster Harin Fernando blamed a “technical issue,” telling CNBC Thursday that VFS Global “missed out” on offering 30-day visas when it starting processing visas to the country on April 17.
In response, VFS Global said, “Visa categories were introduced as per the directives of [Sri Lanka’s] Department of Immigration and Emigration (DI&E).”
Both parties agreed that 30-day travel visas priced at $50 had been reinstated as of May 7. VFS Global, in an email sent to CNBC Monday, said that on this date “the DI&E re-introduced the 30-day visa category for all nationalities.
Sri Lanka’s tourism industry, which has been grappling with challenges from the aftermath of the 2019 Easter Sunday attacks and ongoing economic difficulties, now faces a new hurdle: a significant increase in tourist visa fees. The government’s recent decision to hike the standard tourist visa fee by over 100% and shift to a global processing company has raised eyebrows among industry stakeholders.
Announced on Tuesday, the new visa procedures and the launch of an online visa issuing system came into effect yesterday. However, the move to a global processing company has resulted in higher visa fees, drawing mixed reactions from industry players. The Cabinet of Ministers had previously approved the appointment of GBS Technology Services, IVS Global – FZCO, and VFS VF Worldwide Holdings Ltd. as authorized agents for online visa submissions on behalf of foreigners visiting Sri Lanka.
Under the new system, the standard tourist visa fee, valid for 180 days with each stay restricted to 60 days for non-SAARC countries, has increased from $35 to $75. Additionally, there are additional charges, including an $18.5 service fee and a $7.27 convenience fee, bringing the total individual visa fee to a staggering $100.77. SAARC country tourists also face an increase, with the standard visa fee rising from $20 to $35, though exemptions are provided for Singapore, Maldives, Czech Republic, and Seychelles. See by List
The adjustment comes at a crucial time for Sri Lanka Tourism, which has been navigating the challenges posed by the aftermath of the Easter Sunday attacks in 2019 and ongoing economic difficulties. The Immigration Department’s previous ETA system had garnered praise from tourists globally for its simplicity, and the government’s decision to increase visa fees has sparked concerns among industry stakeholders regarding its potential impact on tourist arrivals and Sri Lanka’s competitiveness as a tourist destination.
Despite signs of improvement in the tourism industry in 2024, with targets set at 2.3 million arrivals and over $4 billion in income, the increase in visa fees could pose challenges to the sector’s stability and growth. During the first 15 days of April, Sri Lanka welcomed a total of 82,531 visitors, bringing the cumulative figure to 718,315, with India, the UK, and Russia emerging as the top source markets during this period.
As Sri Lanka continues its journey towards economic recovery, finding a balance between revenue generation and attracting visitors will be crucial for sustaining growth in the tourism sector. When asked about plans to provide free visas to over 50 countries, Sri Lanka Tourism Development Authority (SLTDA) Chairman Priantha Fernando stated: “It is premature. A lot more work to be done, enabling consideration.”
For the latest updated information and details on the new Sri Lanka visa process and fees, visitors can check the official ETA website at https://www.srilankaevisa.lk/. This website serves as the authoritative source for all current visa requirements, costs, and online application procedures for tourist travel to Sri Lanka.
Another issue: VFS Global’s fees
Sri Lanka’s Ministry of Public Security moved away from its ETA system because of concerns over frequent hacking of the website by scammers, Fernando said.
“We wanted to go for a global company which is very reputed,” he said.
VFS Global stood out among the options, he said. The company works with 67 governments and operates in more than 150 countries, according to its website.
But VFS Global’s fees angered many in Sri Lanka’s travel industry and led to allegations of corruption by Sri Lankan opposition leaders.
The fees — which total some $25 per visa, according to local media — had been disclosed via a contract signed with Sri Lanka’s immigration authority on Dec. 21, 2023, a spokesperson from VFS Global told CNBC.
“Service fee charges are approved by all Governments and are determined based on various factors such as scope of the overall engagement, volume of applications expected, resource and infrastructure costs required to fulfil the Service Level Agreements etc,” said VFS Global. “For example, in the case of Schengen countries, the service fee for short stay visa can go up to a maximum of 40 Euros.”
But these have been significantly reduced for 30-day visas, said Fernando. Now, Sri Lanka’s government keeps $40 and VFS Global charges $10, he said.
‘Free visas’ come with charges
Citizens of seven countries are eligible for free visas to enter Sri Lanka.
“It must be noted — that the 30-day, free visa for seven nationalities namely India, China, Indonesia, Japan, Malaysia, Russia, and Thailand were always available and is valid for travel into Sri Lanka up to 31 May 2024,” a VFS Global spokesperson said.
However, applicants from these countries still have to pay VFS Global’s fees, said Fernando.
“The government of Sri Lanka won’t be charging, but the platform … will,” he said. As a result, “We’re still in debate, whether we should completely give up VFS.
Sri Lanka’s “free visa” policy should not to be confused with the “visa-free” agreements enacted in the past year by many Asian countries. These agreements exempt travelers from needing a visa.
Under Sri Lanka’s policy, visas are required.
Sri Lanka is considering adding 60 more countries to its “free visa” list, said Fernando.
“Pre-Covid, we had more than 40 countries on the free visa,” he said, adding that a committee appointed by the government will issue a decision within 30 days.
“We will definitely have a visa policy in place very soon,” he said. Read Continue
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