Supreme Court Halts Billion-Dollar Outsourcing Deal for Sri Lanka’s Visa System

Published on August 4, 2024

By: Rana Pratap

Sri Lanka’s top court on Friday suspended the government’s plan to outsource visa processing to an India-based consortium poised to earn billions from the deal.

Opposition parties and Tourism Minister Harin Fernando opposed the privatization of Sri Lanka’s electronic travel authorization process, claiming it would deter tourists.

Despite these objections, the government proceeded with the outsourcing in April, contracting India’s GBS Technology Services and IVS Global FZCO, along with VFS Global as a technology partner.

On Friday, the Supreme Court issued an injunction suspending the agreement and temporarily reinstating the local telecom company that previously handled visa processing.

Petitioners argued that the contract was not awarded transparently and claimed the foreign consortium would earn up to $2.75 billion over 16 years.

Under the outsourcing agreement, any foreigner entering Sri Lanka would have to pay $25 for visa processing, even those from countries with visa-free travel arrangements.

The next court hearing is scheduled for October.