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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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Fractious West facing a more solidified Eastern opposition

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An Iranian attack on a neighbouring Gulf state. Image courtesy BBC.

Going forward, it is hoped that a reported ceasefire agreement between the US and Iran would provide a basis for a degree of stability in the Middle East and pave the way for substantive peace talks between the powers concerned. The world is compelled to fall back on hope because there is never knowing when President Donald Trump would change his mind and plans on matters of the first importance. So erratic has he been.

Yet, confusion abounds on who has agreed to what. The US President is on record that a number of conditions put forward by him to Iran to deescalate tensions have been accepted by the latter, whereas Iran is yet to state unambiguously that this is so. For instance, the US side claims that Iran has come clear on the point that it would not work towards acquiring a nuclear weapons capability, but there is no official confirmation by Iran that this is so. The same goes for the rest of the conditions.

Accordingly, the peace process between the US and Iran, if such a thing solidly exists, could be said to be mired in uncertainty. Nevertheless, the wider publics of the world are bound to welcome the prospects of some sort of ceasing of hostilities because it would have the effect of improving their economic and material well being which is today under a cloud.

However, questions of the first magnitude would continue to bedevil international politics and provide the breeding ground for continued tensions between East and West. Iran-US hostilities helped highlight some of these divisive issues and a deescalation of these tensions would not inevitably translate into even a temporary resolution of these questions. The world community would have no choice but to take them up and work towards comprehending them better and managing them more effectively.

For example, there are thorny questions arising from the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). Essentially, this treaty bans the processing and use of nuclear weapons by states but some of the foremost powers are not signatories to it.

Moreover, the NPT does not provide for the destroying of nuclear arsenals by those signatory states which are already in possession of these WMDs. Consequently, there would be a glaring power imbalance between the latter nuclear-armed states and others which possess only conventional weapons.

Such a situation has grave implications for Iran’s security, for instance. The latter could argue, in view of the NPT restrictions, that the US poses a security threat to it but that it is debarred by the Treaty from developing a nuclear arms capability of its own to enable it to match the nuclear capability of the US. Moreover, its regional rival Israel is believed to possess a nuclear weapons capability.

Accordingly, a case could be made that the NPT is inherently unfair. The US would need to help resolve this vexatious matter going forward. But if it remains, US-Iran tensions would not prove easy to resolve. The same goes for Iran-Israeli tensions. Consequently, the Middle East would remain the proverbial ‘powder keg’.

Besides the above issues, the world has ample evidence that it could no longer speak in terms of a united NATO or West. Apparently, there could be no guarantee that US-NATO relations would remain untroubled in future, even if the current Iran-US standoff is peacefully resolved. US-NATO ties almost reached breaking point in the current crisis when the US President called on its NATO partners, particularly Britain, to help keep open the Hormuz Straits for easy navigation by commercial vessels, militarily, on seeing that such help was not forthcoming. Such questions are bound to remain sore points in intra-Western ties.

In other words, it would be imperative for the US’ NATO partners to help pull the US’ ‘chestnuts out of the fire’ going ahead. The question is, would NATO be willing to thus toe the US line even at the cost of its best interests.

For the West, these fractious issues are coming to the fore at a most unpropitious moment. The reality that could faze the West at present is the strong opposition shown to its efforts to bolster its power and influence by China and Russia. Right through the present crisis, the latter have stood by Iran, materially and morally. For instance, the most recent Security Council resolution spearheaded by the US which was strongly critical of Iran, was vetoed by China and Russia.

Accordingly, we have in the latter developments some marked polarities in international politics that could stand in the way of the West advancing its interests unchallenged. They point to progressively intensifying East-West tensions in international relations in the absence of consensuality.

It is only to be expected that given the substance of international politics that the West would be opposed by the East, read China and Russia, in any of the former’s efforts to advance its self interests unilaterally in ways that could be seen as illegitimate, but what is sorely needed at present is consensuality among the foremost powers if the world is to be ‘a less dangerous place to live in.’ Minus a focus on the latter, it would be a ‘no-win’ situation for all concerned.

It would be central to world stability for International Law to be upheld by all states and international actors. Military intervention by major powers in the internal affairs of other countries remains a principal cause of international mayhem. Both East and West are obliged to abide scrupulously with this principle.

From the latter viewpoint, not only did the West err in recent times, but the East did so as well. Iran, for instance, acted in gross violation of International Law when it attacked neighbouring Gulf states which are seen as US allies. Neither Iran nor the US-Israel combine have helped in advancing international law and order by thus taking the law into their own hands.

Unfortunately, the UN has been a passive spectator to these disruptive developments. It needs to play a more robust role in promoting world peace and in furthering consensual understanding among the principal powers in particular. The need is also urgent to advance UN reform and render the UN a vital instrument in furthering world peace. The East and West need to think alike and quickly on this urgent undertaking.

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Science-driven health policies key to tackling emerging challenges — UNFPA

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Dr. Dayanath Ranatunga

Marking World Health Day on April 7, health experts have called for a stronger commitment to science-based decision-making to address increasingly complex and evolving health challenges in Sri Lanka and beyond.

Dr. Dayanath Ranatunga, Assistant Representative of the United Nations Population Fund, stressed that health is no longer confined to hospitals or traditional medical systems, but is shaped by a broad spectrum of social, environmental, and technological factors.

“This year’s theme, ‘Together for Health. Stand with Science,’ reminds us that science is not only for laboratories or policymakers. It is a way of thinking and a tool that shapes everyday decisions,” he said.

Dr. Ranatunga noted that modern health challenges are increasingly interconnected, ranging from infectious diseases such as COVID-19 to climate-related risks, demographic shifts, and emerging forms of online violence.

He warned that maternal and newborn health continues to demand urgent attention despite progress. Globally, an estimated 260,000 women died from pregnancy and childbirth-related causes in 2023 alone—many of them preventable through timely, science-based interventions.

“In countries like Sri Lanka, where fertility rates are declining and survival rates improving, every pregnancy carries greater significance—not just for families, but for the future of communities and economies,” he said.

The UNFPA official also highlighted the growing threat of Technology Facilitated Gender-Based Violence (TFGBV), including cyber harassment and online abuse, noting that these forms of violence can have deep psychological consequences despite lacking visible physical harm.

He emphasised the need for multidisciplinary, science-informed approaches that integrate mental health, digital safety, and survivor-centered care.

Turning to demographic trends, Dr. Ranatunga pointed out that increasing life expectancy is bringing new challenges, particularly the rise of non-communicable diseases such as diabetes, cardiovascular illnesses, and cancers.

In Sri Lanka, nearly 13.9% of mothers develop diabetes during pregnancy, a trend attributed to obesity and unhealthy lifestyles, underscoring the urgent need for preventive healthcare strategies.

“Are we investing enough in prevention?” he asked, noting that early intervention and healthier lifestyles could significantly reduce long-term healthcare costs, especially in a country with a free public healthcare system.

He underscored the importance of data-driven policymaking, stating that scientific research and analytics enable governments to identify gaps, anticipate future needs, and allocate resources more effectively.

The UNFPA, he said, is already leveraging tools such as Geographic Information Systems (GIS) to improve access to maternal healthcare, including mapping travel times for pregnant women to reach health facilities.

Digital innovation is also transforming healthcare delivery, from telemedicine to real-time data systems, improving efficiency and ensuring continuity of care even during emergencies.

In Sri Lanka, partnerships between the government and development agencies are helping to modernise training institutions, including facilities in Batticaloa, equipping healthcare workers with both clinical and digital skills.

However, Dr. Ranatunga cautioned that technology alone is not a solution.

“It must be guided by evidence and grounded in equity,” he said, pointing out that women’s health remains significantly underfunded, with only about 7% of global healthcare research focusing on conditions specific to women.

He also drew attention to the growing health impacts of climate change, including extreme weather, food insecurity, and displacement, describing it as an emerging public health crisis.

“Health does not begin in hospitals. It is shaped by the environments we live in, the choices we make, and the systems we build,” he said.

Calling for renewed commitment, Dr. Ranatunga urged stakeholders to invest in prevention, embrace innovation, and ensure that science remains central to policy and practice.

“Science is not just about knowledge—it is about ensuring that everyone has the opportunity to live healthy, dignified lives, and that no one is left behind,” he added.

 

By Ifham Nizam

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Sharing the festive joy with ‘Awurudu Kaale’

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The visually impaired who make up Bright Light Band in Awurudu attire

Melantha Perera is well known as a very versatile musician.

He was involved with the band Mirage, as their keyboardist/vocalist, and was also seen in action with other outfits, as well, before embarking on a trip to Australia, as a solo artiste.

I now hear that he has plans to operate as a trio.

However, what has got many talking about Melantha, these days, is his awesome work with the visually impaired Bright Light Band.

They have worked out a special song for the Sinhala and Tamil New Year, aptly titled ‘Awurudu Kaale.

Says Melantha: “This song has been created to celebrate the spirit of the Sinhala and Tamil New Year and to share the joy of the Awurudu season with all Sri Lankans”.

Yes, of course, Melantha composed the song, with the lyrics written collaboratively by Melantha, Badra, and the parents of the talented performers, whose creative input brought the song to life during moments of inspiration.

Melantha Perera: Awesome work with Bright Light Band

This meaningful collaboration reflects the strong community behind the Bright Light Band.

According to Melantha, accompaning the song is a vibrant video production that also features the involvement of the parents, highlighting unity, joy, and togetherness.

Beyond showcasing their musical talents, the visually impaired members of Bright Light Band deliver a powerful message, through this project, that their abilities extend beyond singing, as they also express themselves through movement and dance.

Melantha expressed his satisfaction with the outcome of the project and looks forward to sharing it with audiences across the country during this festive season.

He went on to say that Bright Light Band extends its sincere gratitude to Bcert Australia for their generous Mian sponsorship, the CEO of the company, Samath Fernando, for his continuous support in making such initiatives possible, and Rukshan Perera for his personal support and encouragement in bringing this project to completion.

The band also acknowledges Udara Fernando for his invaluable contribution, generously providing studio space and accommodating extended recording sessions to suit the children’s availability.

Appreciation is warmly extended to the parents, whose unwavering commitment from ensuring attendance at rehearsals to supporting the video production has been instrumental in the success of this project.

Through ‘Awurudu Kaale’, Bright Light Band hopes to spread festive cheer and inspire audiences, proving that passion and talent know no boundaries.

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