By: Staff Writer
May 27, Colombo (LNW): A growing number of foreign nationals—primarily from Israel, India, Russia, and Ukraine—are reportedly engaging in business and employment activities in Sri Lanka in violation of visa regulations, raising serious concerns over lost economic benefits and regulatory breaches, the Daily Mirror has learned.
An official from the Ministry of Tourism, speaking on condition of anonymity, revealed that despite strict guidelines issued by the Sri Lanka Tourism Development Authority (SLTDA) regarding the issuance of visas for tourism, employment, and investment, many foreigners are bypassing these requirements.
The SLTDA’s framework only permits foreign workers in the hospitality industry in roles such as chefs, managers, and therapists—and only within registered and graded establishments.
“Only hotels and restaurants that meet specific standards are allowed to hire foreign nationals. However, we’ve observed a growing number of foreigners working even in small, unregistered eateries,” the official said. “In many cases, established foreign entrepreneurs who arrived earlier are now facilitating visas for new arrivals through immigration channels that overlook SLTDA guidelines.”
The SLTDA mandates that foreign investors must pay the Tourism Development Levy, maintain a required deposit in an International Resident Account (IRA), and follow a detailed application process. However, there are reports of foreign nationals securing one-year resident visas by evading these regulations—allegedly with the help of complicit immigration officers.
“This problem has persisted for years. We are currently drafting reforms to plug the loopholes and eliminate corruption in the visa processing system,” the official added.
According to the Ministry, these foreign workers often cater exclusively to tourists from their own countries, receiving payments through international digital platforms, effectively sidelining Sri Lanka’s financial system and depriving the nation of valuable foreign exchange.
Public Security Minister Ananda Wijepala confirmed that foreigners found violating visa laws are subject to deportation. “We are intensifying efforts to strengthen visa enforcement,” he said.
Sri Lanka, currently seeking to revive its post-crisis economy, depends heavily on tourism, which contributed over USD 2 billion to the economy in 2023. However, unregulated foreign business activity poses a significant threat to local employment, tax revenue, and regulatory compliance.
While Sri Lanka encourages legitimate foreign investment, particularly through programs such as the Board of Investment (BOI) and the Colombo Port City initiative, concerns remain about the ease with which certain individuals exploit loopholes.
According to BOI data, over 1,500 foreign companies operate legally across sectors in Sri Lanka, including tourism, manufacturing, and IT. Ensuring that such operations comply with national guidelines is essential to maintain a level playing field and ensure equitable economic benefits for the country.
