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Visa Debacle: Fixing what ain’t broken

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by Dr Sirimewan Dharmaratne,
former Senior Analyst, HMRC, UK

There is a famous saying ‘If it ain’t broke, don’t fix it. Sri Lanka seems to be the exception to this rule. This is no more laid bare than the current debacle with tourist visas. Most countries that want tourist dollars have visa free entry or a minimal fee. A visa is a means for controlling access and a fee act as a further deterrent. It is a form of a user fee that is designed to restrict entry. Therefore, if you want tourists to come to your country and spend money, simple economics says not to charge an entry fee.

Reciprocal Requirements

The justification seems to be centred around the fact that Lankans pay much higher fees to this company when they travel compared to what visitors pay to come to Sri Lanka. This justification alone typifies why Sri Lanka is where it is now. The underlying issues here is not what Sri Lankans have to pay when they travel abroad but what tourists have to pay when they come to Sri Lanka. This is what those who are actually making a living from the tourism is concerned about. Most developed countries have stringent visa requirements for citizens of less developed countries for obvious reasons. But those countries do not have reciprocal requirements. This is not because they don’t have pride, but because they need the money that tourism brings in. It makes good business sense.

They make more money by allowing well-off tourists to come freely and spend rather than by selling visas.

Elated by the recent surge in tourist arrivals, in the eyes of the government, Sri Lanka is now a ‘cannot do without’ destination. Therefore, the first response is to increase the price of everything, starting with a visa fee and let others have a piece of the pie as well. Having this overassessment about the value of the country has led to various forms of rip-offs, some of which have been widely circulated in social media. Further, one has only to check hotel rates and other accommodation to realise how the rates have gone up astronomically. Increase of visa fee appears to be following the same misguided thinking. The truth, however, is that Sri Lanka is considered a ‘cheap’ destination for an ‘exotic’ holiday. It does not particularly standout in any aspect, such as beaches, nature, wildlife or food compared to other similar destinations. As Sri Lankans, we all have a visceral value of the country, but in the eyes of tourists, it is one of the many destinations that they can spend their money on and not a place to be visited at any cost.

Demand for Travel

Access costs determined the demand for a destination. When there are competing destinations in terms of characteristics, a savvy, erudite traveller will naturally select a destination that has lower access cost. While there is some flexibility in certain access costs, such as airfares, visa costs are regarded as a waste that does not add anything to the value of a trip. Most Western tourists look at it in disdain because they believe, rightly or wrongly, developing nations should be facilitating their patronage and not restrict it. Therefore, the issue is not what Sri Lankans have to pay when they travel overseas, but what tourists have to pay when they come to Sri Lanka compared to other South Asian destinations.

Sri Lanka had a somewhat high US$50 visa, which most visitors acquiesced. According to SLTDA’s own departure survey, most visitors stay 21 days or less with most frequent length-of-stay being 14 or 21 days. Therefore, it is likely that in excess of 95% of the visitors would have obtained this visa. This option that was mysteriously excluded, appears to have been reinstated. However, what in fact is the correct fee is sketchy.

If the proposed service fees are added, then the actual cost to the visitor could be as high as $75, which is a 50% increase. This is where knowledge of some basic economics would have been helpful. If you raise the price of goods or service without a discernible increase in quality, the demand will go down.

May it be for eggs, bread, fuel or visas, this is one of the basic economic principles that actually work. On the other hand, there is evidence that while the visa fee is US$50, only US$40 is paid to the government with the remaining US$10 is paid to the company as a ‘service’ fee. If this is the case, then it is absolute madness. While the visitors don’t care how the money is divided, it is imbecilic to hand over US$10 from each visitor for a service that was done for free just a month ago. The thinking and reasoning behind this defeat any form of rationality and can only be attributed to a perfidious, self-serving motive.

Uniqueness and elasticity

How much the visits would go down depends on the amount of increase and availability of substitutes. These two together show how elastic the demand would be.

This is where Sri Lanka has no particular advantage compared to other countries in the region. There are plenty of close substitute destinations if tourists want to visit South East Asia, which offer visa free arrival or a minimal visa fee. Apart from that, for European tourists, a whole new market has opened up in Eastern Europe, Andalucía, Türkiye and in the former Soviet republics, where holidays are ridiculously cheap. Majority of these countries do not have visa requirements for Western European tourists, which is their target market.

Sri Lanka also does not have any ‘must see’ places, such as Machu Picchu, Great Wall or Angkor Wat. There is no compelling reason for a visitor to specifically select Sri Lanka that would justify the additional access cost. What is on offer is fairly prosaic, and comparable to many other countries that offer similar experiences.

The bottom line is despite the euphoria surrounding the new found tourism goldmine, Sri Lanka is easily substitutable and therefore the demand is likely to be very elastic. If this nonsensical visa fee continues to exist, then a significant reduction in visitation can be expected, especially those with families. The loss will not be to the tourists but to Sri Lanka.

Logic of Outsourcing

With Sri Lanka being a popular outsourcing destination, it is hard to comprehend that there is no firm that could perform this task. In fact, a local entity seems to have manage well up to 16 April, and through the peak of arrivals during the winter months. Why their service no longer suffices is a mystery. Further, according to reports, Sri Lankan IT professionals could have done and were doing the work for a fraction of the cost. What is the compelling reason to change the status quo? There have been no reports of major infringements or capacity issues. So why fix something that was not broken?

Length of Contract

This is another aspect of this arrangement that does not make any sense. Why get into a 16-year contract when the world of IT and AI is fast changing? There are already unmanned immigration counters in many airports. Most documents and applications are now machine processed. It is predicted that most back-office work will become redundant in the near future. This company need not make huge investment on infrastructure to take this additional work on for Sri Lanka. Such a large company should be able to easily absorb this work without significant additional investment. Therefore, there is no reason to ask or agree to a contract for the next 16 years! This is an egregious decision on the part of the government, or is there some other in-win agreement that does not benefit the country?

Money Trail

Another dubious aspect of this contract is how the visa revenue is transferred to Sri Lanka. Apparently, when visas were processed locally, the daily take was sent to the Treasury at the end of each day. With the new arrangement, it is understood that the daily revenue is sent to a Dubai account of the company and transferred to Sri Lanka two days later, sans service charges. Based on an average of 5,000 daily visitors and a US$50 visa fee, this means maintaining an account with a minimum daily balance of US$250,000 in an overseas bank using Sri Lankan visa fees, but that does not belong to Sri Lanka. This guaranteed money could be used for various reasons, apart from the interest that could accrue on a daily basis, such as for overnight lending. The bottom line is that other than the undeserved service fee, the company is placed to generate more income from the financial arrangement and contract that Sri Lanka has seemingly sleepwalked into.

Security

The justification that it is a global company which processes visas in many countries is irrelevant. In any country, by law, one has to first look for local contractors before looking overseas. There is no evidence this procedure has been followed. But the more compelling issue is national security. Although, it is now said that foreign nationals would not man visa counters, they will have access to vast amounts of information and data that could be used for the benefit of a foreign nation. Although visa issuance may be done by Sri Lankans, back-office staff could be selectively biased in forwarding applications. This could create problems for the Sri Lankan governments from friendly nations if they see a pattern of bias. These concerns have been already raised by countries that are crucial for Sri Lankan foreign relations.

Prognosis

This change does not pass any logic that could justify such a monumental change. It appears to have been done in an ad hoc manner without doing a proper economic analysis or any other analysis relating to viability, security or economic development. There will definitely be a drop in visitations as there won’t be free entry for citizens of any country, even those who enjoyed that benefit earlier. What is most likely to suffer is family visits, because a potential increase in access cost of $300 to an average family of four would be a significant shock.

If the process is more convoluted, which requires submitting further documentation other than just passport information, it will be a further deterrent. All this will have a negative impact on the visitation rates that are now envisaged by those who are actually keeping Sri Lanka tourism going. There will be a corresponding impact on the local economy.

Currently Sri Lanka only enjoys a measly 15% repeat visitors, most of whom may even not be bone fide tourists. This is compared to nearly 40% repeat visitors in a destination like Barbados, which has no visa requirement for European or North American tourists. How a country, which has absolutely nothing over Sri Lanka has achieved this feat needs to be understood. It is definitely not by making visitors unwelcomed at the port of entry. Sri Lanka needs to rethink where they are going with tourism in the future and not kill the proverbial ‘goose that lays the golden eggs.’



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Features

Cricket and the National Interest

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The appointment of former minister Eran Wickremaratne to chair the Sri Lanka Cricket Transformation Committee is significant for more than the future of cricket. It signals a possible shift in the culture of governance even as it offers Sri Lankan cricket a fighting possibility to get out of the doldrums of failure. There have been glorious patches for the national cricket team since the epochal 1996 World Cup triumph. But these patches of brightness have been few and far between and virtually non-existent over the past decade. At the centre of this disaster has been the failures of governance within Sri Lanka Cricket which are not unlike the larger failures of governance within the country itself. The appointment of a new reform oriented committee therefore carries significance beyond cricket. It reflects the wider challenge facing the country which is to restore trust in public institutions for better management.

The appointment of Eran Wickremaratne brings a professional administrator with a proven track record into the cricket arena. He has several strengths that many of his immediate predecessors lacked. Before the ascent of the present government leadership to positions of power, Eran Wickremaratne was among the handful of government ministers who did not have allegations of corruption attached to their names. His reputation for financial professionalism and integrity has remained intact over many years in public life. With him in the Cricket Transformation Committee are also respected former cricketers Kumar Sangakkara, Roshan Mahanama and Sidath Wettimuny together with professionals from legal and business backgrounds. They have been tasked with introducing structural reforms and improving transparency and accountability within cricket administration.

A second reason for this appointment to be significant is that this is possibly the first occasion on which the NPP government has reached out to someone associated with the opposition to obtain assistance in an area of national importance. The commitment to bipartisanship has been a constant demand from politically non-partisan civic groups and political analysts. They have voiced the opinion that the government needs to be more inclusive in its choice of appointments to decision making authorities. The NPP government’s practice so far has largely been to limit appointments to those within the ruling party or those considered loyalists even at the cost of proven expertise. The government’s decision in this case therefore marks a potentially important departure.

National Interest

There are areas of public life where national interest should transcend party divisions and cricket, beloved of the people, is one of them. Sri Lanka cannot afford to continue treating every institution as an arena for political competition when institutions themselves are in crisis and public confidence has become fragile. It is therefore unfortunate that when the government has moved positively in the direction of drawing on expertise from outside its own ranks there should be a negative response from sections of the opposition. This is indicative of the absence of a culture of bipartisanship even on issues that concern the national interest. The SJB, of which the newly appointed cricket committee chairman was a member objected on the grounds that politicians should not hold positions in sports administration and asked him to resign from the party. There is a need to recognise the distinction between partisan political control and the temporary use of experienced administrators to carry out reform and institutional restructuring. In other countries those in politics often join academia and civil society on a temporary basis and vice versa.

More disturbing has been the insidious campaign carried out against the new cricket committee and its chairman on the grounds of religious affiliation. This is an unacceptable denial of the reality that Sri Lanka is a plural, multi ethnic and multi religious society. The interim committee reflects this diversity to a reasonable extent. The country’s long history of ethnic conflict should have taught all political actors the dangers of mobilising communal prejudice for short term political gain. Sri Lanka paid a very heavy price for decades of mistrust and division. It would be tragic if even cricket administration became another arena for communal suspicion and hostility. The present government represents an important departure from the sectarian rhetoric that was employed by previous governments. They have repeatedly pledged to protect the equal rights of all citizens and not permit discrimination or extremism in any form.

The recent international peace march in Sri Lanka led by the Venerable Bhikkhu Thich Paññākāra from Vietnam with its message of loving kindness and mindfulness to all resonated strongly with the masses of people as seen by the crowds who thronged the roadsides to obtain blessings and show respect. This message stands in contrast to the sectarian resentment manifested by those who seek to use the cricket appointments as a weapon to attack the government at the present time. The challenges before the Sri Lanka Cricket Transformation Committee parallel the larger challenges before the government in developing the national economy and respecting ethnic and religious diversity. Plugging the leaks and restoring systems will take time and effort. It cannot be done overnight and it cannot succeed without public patience and support.

New Recognition

There is also a need for realism. The appointment of Eran Wickremaratne and the new committee does not guarantee success. Reforming deeply flawed institutions is always difficult. Besides, Sri Lanka is a small country with a relatively small population compared to many other cricket playing nations. It is also a country still recovering from the economic breakdown of 2022 which pushed the majority of people into hardship and severely weakened public institutions. The country continues to face unprecedented challenges including the damage caused by Cyclone Ditwah and the wider global economic uncertainties linked to conflict in the Middle East. Under these difficult circumstances Sri Lanka has fewer resources than many larger countries to devote to both cricket and economic development.

When resources are scarce they cannot be wasted through corruption or incompetence. Drawing upon the strengths of all those who are competent for the tasks at hand regardless of party affiliation or ethnic or religious identity is necessary if improvement is to come sooner rather than later. The burden of rebuilding the country cannot rest only on the government. The crisis facing the country is too deep for any single party or government to solve alone. National recovery requires capable individuals from across society and from different sectors such as business and civil society to work together in areas where the national interest transcends party politics. There is also a responsibility on opposition political parties to support initiatives that are politically neutral and genuinely in the national interest. Not every issue needs to become a partisan battle.

Sri Lanka cricket occupies a special place in the national consciousness. At its best it once united the country and gave Sri Lankans a sense of pride and international recognition. Restoring integrity and professionalism to cricket administration can therefore become part of the larger task of national renewal. The appointment of Eran Wickremaratne and the new committee, while it does not guarantee success, is a sign that the political leadership and people of the country may be beginning to mature in their approach to governance. In recognising the need for competence, integrity and bipartisan cooperation and extending it beyond cricket into other areas of national life, Sri Lanka may find the way towards more stable and successful governance..

by Jehan Perera

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From Dhaka to Sri Lanka, three wheels that drive our economies

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Court vacation this year came with an unexpected lesson, not from a courtroom but from the streets of Dhaka — a city that moves, quite literally, on three wheels.

Above the traffic, a modern metro line glides past concrete pillars and crowded rooftops. It is efficient, clean and frequently cited as a symbol of progress in Bangladesh. For a visitor from Sri Lanka, it inevitably brings to mind our own abandoned light rail plans — a project debated, politicised and ultimately set aside.

But Dhaka’s real story is not in the air. It is on the ground.

Beneath the elevated tracks, the streets belong to three-wheelers. Known locally as CNGs, they cluster at junctions, line the edges of markets and pour into narrow roads that larger vehicles avoid. Even with a functioning rail system, these three-wheelers remain the city’s most dependable form of everyday transport.

Within hours of arriving, their importance becomes obvious. The train may take you across the city, but the journey does not end there. The last mile — often the most complicated part — belongs entirely to the three-wheeler. It is the vehicle that gets you home, to a meeting or simply through streets that no bus route properly serves.

There is a rhythm to using them. A destination is mentioned, a price is suggested and a brief negotiation follows. Then the ride begins, edging into traffic that feels permanently compressed. Drivers move with instinct, adjusting routes and squeezing through gaps with a confidence built over years.

It is not polished. But it works.

And that is where the comparison with Sri Lanka becomes less about what we lack and more about what we already have.

Back home, the three-wheeler has long been part of daily life — so familiar that it is often discussed only in terms of its problems. There are frequent complaints about fares, refusals or the absence of meters. More recently, the industry itself has become entangled in politics — from fuel subsidies to regulatory debates, from election-time promises to periodic crackdowns.

In that process, the conversation has shifted. The three-wheeler is often treated as a problem to be managed, rather than a service to be strengthened.

Yet, seen through the experience of Dhaka, Sri Lanka’s system begins to look far more settled — and, in many ways, ahead.

There is a growing structure in place. Meters, while not perfect, are widely recognised. Ride-hailing apps have added transparency and reduced uncertainty for passengers. There are clearer expectations on both sides — driver and commuter alike. Even small details, such as designated parking areas in parts of Colombo or the increasing standard of vehicles, point to an industry slowly moving towards professionalism.

Just as importantly, there is a human element that remains intact.

In Sri Lanka, a three-wheeler ride is rarely just a transaction. Drivers talk. They offer directions, comment on the day’s news, or share local knowledge. The ride becomes part of the social fabric, not just a means of getting from one point to another.

In Dhaka, the scale of the city leaves less room for that. The interaction is quicker, more direct, shaped by urgency. The service is essential, but it is under constant pressure.

What stands out, across both countries, is that the three-wheeler is not a temporary or outdated mode of transport. It is a necessity in dense, fast-growing Asian cities — one that fills gaps no rail or bus system can fully address.

Large infrastructure projects, like light rail, are important. They bring efficiency and long-term capacity. But they cannot replace the flexibility of a three-wheeler. They cannot reach into narrow streets, respond instantly to demand or provide that crucial last-mile connection.

That is why, even in a city that has invested heavily in modern rail, Dhaka still runs on three wheels.

For Sri Lanka, the lesson is not simply about what could have been built, but about what should be better managed and valued.

The three-wheeler industry does not need to be politicised at every turn. It needs steady regulation — clear fare systems, proper licensing, safety standards — alongside encouragement and recognition. It needs to be seen as part of the solution to urban transport, not as a side issue.

Because for thousands of drivers, it is a livelihood. And for millions of passengers, it is the most immediate and reliable form of mobility.

The tuk-tuk may not feature in grand policy speeches or infrastructure blueprints. It does not run on elevated tracks or attract international attention. But on the ground, where daily life unfolds, it continues to do what larger systems often struggle to do — show up, adapt and keep moving.

And after watching Dhaka’s streets — crowded, relentless, yet functioning — that small, three-wheeled vehicle feels less like something to argue over and more like something to get right.

(The writer is an Attorney-at-Law with over a decade of experience specialising in civil law, a former Board Member of the Office of Missing Persons and a former Legal Director of the Central Cultural Fund. He holds an LLM in International Business Law)

 

by Sampath Perera recently in Dhaka, Bangladesh 

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Dubai scene … opening up

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Seven Notes: Operating in Dubai

According to reports coming my way, the entertainment scene, in Dubai, is very much opening up, and buzzing again!

After a quieter few months, May is packed with entertainment and the whole scene, they say, is shifting back into full swing.

The Seven Notes band, made up of Sri Lankans, based in Dubai, are back in the spotlight, after a short hiatus, due to the ongoing Middle East problems.

On 18th April they did Legends Night at Mercure Hotel Dubai Barsha Heights; on Thursday, 9th May, they will be at the Sports Bar of the Mercure Hotel for 70s/80s Retro Night; on 6th June, they will be at Al Jadaf Dubai to provide the music for Sandun Perera live in concert … and with more dates to follow.

These events are expected to showcase the band’s evolving sound, tighter stage coordination, and stronger audience engagement.

With each performance, the band aims to refine its identity and build a loyal following within Dubai’s vibrant nightlife and event scene.

Pasindu Umayanga: The group’s new vocalist

What makes Seven Notes standout is their versatility which has made the band a dynamic and promising act.

With a growing performance calendar, new talent integration, and international ambitions, the band is definitely entering a defining phase of its journey.

Dubai’s music industry, I’m told, thrives on diversity, energy, and audience connection, with live bands playing a crucial role in elevating events—from corporate shows to private concerts. Against this backdrop, Seven Notes is positioning itself not just as another band, but as a performance-driven musical unit focused on consistency and growth.

Adding fresh momentum to the group is Pasindu Umayanga who joins Seven Notes as their new vocalist. This move signals a strategic upgrade—not just filling a role, but strengthening the band’s front-line presence.

Looking beyond local stages, Seven Notes is preparing for an international tour, to Korea, in July.

Bassist Niluk Uswaththa: Spokesperson for Seven Notes

According to bassist Niluk Uswaththa, taking a band abroad means: Your sound must hold up against unfamiliar audiences, your performance must translate beyond language, and your discipline must be at a professional level.

“If executed well, this tour could redefine Seven Notes from a local band into an emerging international act,” added Niluk.

He went on to say that Dubai is not an easy market. It’s saturated with highly experienced, multi-genre bands that can adapt instantly to any crowd.

“To stand out consistently you need to have tight rehearsal discipline, unique sound identity (not just covers), strong stage chemistry, audience retention – not just applause.”

No doubt, Seven Notes is entering a critical growth phase—new member, multiple shows, and an international tour on the horizon. The opportunity is real, but so is the pressure.

However, there is talk that Seven Notes will soon be a recognised name in the regional music scene.

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