Sri Lanka's visa-free plan for 40 nations on hold amid legal row over private visa deal

Sri Lanka’s plan to roll out a visa-free entry scheme for 33 countries has been delayed, with the government awaiting clearance from the Attorney General’s Department, according to a report by a Sri Lankan news outlet, Economy Next. The delay stems from ongoing legal complications linked to a previous visa outsourcing deal, Foreign and Tourism Minister Vijitha Herath confirmed this week.

The proposed scheme, announced in July 2025, aimed to expand the list of countries eligible for free Electronic Travel Authorisation (ETA) from 7 to 40, in a bid to boost post-crisis tourism. However, the implementation has yet to begin, leaving travellers from those nations still paying regular visa fees.

“We have to submit the new gazette notification to the parliament,” Minister Herath said at a weekly post-Cabinet briefing on Tuesday. “After that, we will implement that process. We expect to finalise it within one or two months.”

Speaking separately to EconomyNext, the minister explained that the delay was due to pending legal guidance from the Attorney General’s office. “We are waiting for some clarification from the AG because the case on the previous online visa scheme is still not finished,” he said. “There is some legal advice required related to revenue when we go for a free visa scheme.”

Currently, only passport holders from China, India, Indonesia, Japan, Malaysia, Russia, and Thailand are eligible for free ETA entry into Sri Lanka.

The Attorney General’s review comes soon after a special audit by the Auditor General’s Department into the suspended visa outsourcing deal with VFS, IVS, and GBS, companies previously contracted to manage Sri Lanka’s online visa processing. The audit report alleged that high fees were charged and that portions of revenue due to the state were not properly remitted.

The controversial visa outsourcing arrangement, which began in April 2024, was halted by court order on August 2, 2024, after concerns over excessive charges and non-transparent operations.

Herath said the government intends to move ahead with the visa-free initiative once all legal issues are resolved, calling it a vital step in restoring confidence in Sri Lanka’s tourism infrastructure while ensuring state revenue remains protected.