Skift Take
Thailand, Malaysia, China â and now Sri Lanka â are catching on: relaxing travel rules boosts tourism. With Sri Lanka eyeing a jump from 1.49 million visitors last year to 2.5 million this year, easing entry is their big play.
Sri Lanka is set to launch a six-month pilot program on October 1, offering free 30-day tourist visas on arrival to citizens from 35 countries, including the U.S., UK, Russia, India and China. The initiative, which temporarily waives the typical $50 visa fee, aligns with the island nation’s peak travel season, lasting from December to mid-April. This move is part of a broader strategy to revitalize tourism, a sector crucial to Sri Lanka’s economy.
Sri Lanka aims to welcome 2.5 million tourists and attract revenue worth $4 billion by the end of this year. Tourism arrivals peaked in 2018 in Sri Lanka, when 2.5 million tourists spent $4.4 billion in the country.
Last year in December the country finally announced its plans to roll out its global tourism marketing campaign urging tourists âYouâll Come Back For More,â marking the first such campaign since 2007.
The free visa announcement comes amid ongoing concerns over a visa scam that has sparked significant controversy. In April, the Immigration Department, replaced the state-run telecommunications company Mobitel, which managed the Electronic Travel Authorization (ETA) system, with a consortium of foreign companies. The companies included Singapore-registered GBS Technology Services, the UAE-registered IVS Global-FZCO, and the Dubai-headquartered VFS VF Worldwide Holdings.
Following a public outcry and multiple legal challenges, Sri Lanka’s highest court ordered a return to the local provider.
Tourism Resurgence
Tourism, a vital revenue stream for Sri Lanka, has seen a resurgence in 2024. Between January 1 and August 19, the country welcomed over 1.3 million tourists, with India, the UK and Russia being the top source markets.
Earnings from tourism in the first half of 2024 soared to over $1.5 billion, a 78% increase year-on-year, highlighting the sector’s rapid recovery. This is particularly significant given the political and economic turmoil that had previously deterred visitors.
Europe continues to be a major influence, accounting for nearly half of all arrivals, while Asia and the Pacific regions have also emerged as key contributors. The increase in visitors from these regions underscores shifting dynamics in Sri Lankaâs tourism landscape.
In 2023, Sri Lanka saw a significant rebound in tourism, welcoming 1.49 million visitors â more than double the 2022 figures, according to the Sri Lanka Tourism Development Authority.
Industry Reaction
The travel industry welcomed the visa-free initiative. Sam Clark, CEO of Experience Travel Group, described it as a “game-changing blueprint” for the country’s tourism future. âItâs a huge opportunity for British ministers to negotiate a permanent visa-free arrangement,â Clark said.
From 2018, the British government had warned tourists from visiting the Asian country saying “food, medicine and medical services” may be limited by political unrest. This has had an impact on tourism to Sri Lanka, with bookings still well below 2018 figures.
Krishna Rathi, senior country director at Agoda, noted that easing travel restrictions typically leads to increased interest in a destination, as seen in other countries that have introduced similar measures.
âWe saw an increase in Agoda’s search data when Thailand and Malaysia introduced visa waivers for Indian tourists, and the same effect occurred more recently when India removed tourist visa fees for Thai travellers. We’ll be sure to keep a close watch on how this impacts visitors to Sri Lanka,â Rathi said.
Sri Lanka Monthly Tourism Arrivals
| Month | 2023 | 2024 | % Change |
|---|---|---|---|
| January | 102,545 | 208,253 | 103.08 |
| February | 107,639 | 218,350 | 102.09 |
| March | 125,495 | 209,181 | 66.7 |
| April | 105,498 | 148,867 | 41.1 |
| May | 83,309 | 112,128 | 34.6 |
| June | 100,388 | 113,470 | 13 |
| July | 143,039 | 187,810 | 31.3 |
| August | 136,405 | ||
| September | 111,938 | ||
| October | 109,199 | ||
| November | 151,496 | ||
| December | 210,352 | ||
| Total | 1,487,303 | 1,198,059 |
Source: Sri Lanka Tourism Development Authority
The Russia Angle
The visa-free program, while temporary, could serve as a catalyst for further growth, particularly from markets like Russia, where arrivals have been bolstered by direct flights.
However, the momentum has shown signs of slowing since May 2024, prompting calls for targeted measures to sustain and grow this important market. Industry experts suggest that reducing the financial burden on travelers could be key to attracting more Russian tourists. Proposed measures include exempting embarkation fees and landing and parking costs for flights, particularly at Mattala Rajapaksa International Airport, which has been effective in the past.
Additionally, allowing transactions in native currencies could further ease the travel process and enhance Sri Lanka’s appeal to Russian visitors.
The List of Countries
Travelers from the following countries will be approved for free 30-day tourist visas to Sri Lanka starting on October 1, 2024, until April 2025:
- India
- United Kingdom
- United States
- China
- Russia
- Germany
- France
- Japan
- Saudi Arabia
- Canada
- Australia
- South Korea
- Netherlands
- United Arab Emirates
- Italy
- Switzerland
- Spain
- Sweden
- Belgium
- Qatar
- Austria
- Indonesia
- Malaysia
- Israel
- New Zealand
- Denmark
- Kazakhstan
- Poland
- Czech Republic
- Bahrain
- Belarus
- Oman
- Thailand
- Nepal
- Iran
