Sri Lanka’s Supreme Court suspends controversial visa process involving Indian company

Sri Lanka's Supreme Court suspends controversial new visa scheme, sparking concerns over corruption and tourism industry impact.

Sri Lanka’s Supreme court on August 2 issued an interim order suspending the government’s new visa scheme, run by a consortium including an Indian company, that earlier sparked controversy over allegations of corruption totalling over a billion dollars. The Supreme Court ordered that the previously used online visa system be restored.

In April this year, Sri Lanka’s Department of Immigration and Emigration switched to a new visa portal, roping in a consortium of GBS Technology Services, the India-registered IVS Global Services, and VFS Global. The formerly used Electronic Travel Authorisation system, operated by the state-run telecom provider Mobitel, was scrapped, despite the service’s widely acknowledged speed and efficiency. While both, GBS Technology and IVS Global Services partner India’s Ministry of External Affairs, authenticating and processing documents for many Indian missions, IVS also processes Indian visa applications of Sri Lankans.

Also read: Tourism-reliant Sri Lanka faces backlash over new visa system

Further, the new system steeply increased the costs of Sri Lankan visas, especially for tourists, triggering concern in the island’s nation’s tourism industry. Representatives of the key foreign exchange-earning sector resisted the move, contending that the high costs would adversely impact arrivals that were beginning to see an uptick following the pandemic years and the island nation’s economic crisis of 2022. The issue drew media attention in Sri Lanka in May, when a video recording of a Sri Lankan traveller expressing his disapproval at “Indians” operating the on-arrival visa counter officers at the Bandaranaike International Airport went viral.

Subsequently, three Opposition parliamentarians Champika Ranawaka, Rauf Hakeem, and M.A. Sumanthiran moved the Supreme Court against the Minister of Public Security Tiran Alles, and the Ranil Wickremesinghe-led Government for allegedly “aiding and perpetrating a multibillion-dollar scam involving the IVS visa procedure”. The legislators appeared in person for the case, in which the three companies are among the respondents. In his petition, Mr. Sumanthiran argued that “whilst the foreign currency returns to the Government of Sri Lanka would be negligible, the opportunity granted to 29th and 30th Respondent [GBS Technology Services & IVS Global – FZCO and VF Worldwide Holdings], to enrich itself from this project is approximately $1.4 billion”. Corruption watchdog Transparency International Sri Lanka, and representatives of the tourism industry also went to court on the matter. The case is scheduled to be taken up again in October.

Meanwhile, Sri Lanka must restore the old visa system with immediate effect consequent to the court order. As of August 3 morning, the portal for the new system was suspended. “For now, there is no online visa that is available. Visitors can only use the visa on arrival counter at the Colombo airport. It is in everyone’s best interest to restore the old system without any delay,” said Nishad Wijetunga, president of the Sri Lanka Association of Inbound Tour Operators. The Hindu tried contacting Sri Lanka’s Tourism Minister and the Department of Immigration and Emigration for comment on August 3, but is yet to receive a response from either.

Sri Lanka recorded over 10 lakh tourist arrivals from January to June this year, with the sector earning nearly $1.5 billion in the period, according to official data.