Sri Lanka Bets on Visa Fee Waiver for 40 Nations to Hit 3 Million Tourists

Sri Lanka is finally moving closer to extend free visas for visitors from 40 countries, including the seven that already enjoy visa fee waiver and 33 newly-added markets.

Tourism Minister Vijitha Herath said Friday that tourists from countries including the U.S., UK, Canada, Germany, Saudi Arabia, the United Arab Emirates, and Australia will soon be able to enter the island without paying visa fees. The move, he said, aims to attract more tourists, cut red tape, and send a message that Sri Lanka is open for business.

Herath acknowledged the waiver could cost the government about $66 million in visa fees but said the broader economic gains from higher tourist arrivals would more than make up for it.

But before the plan can go live, it needs clearance from the Attorney General’s office. Industry stakeholders told Skift they expect that approval to be quick and straightforward.

Skift has also reached out to Sri Lanka Tourism Development Authority for comment.

The Visa Fee Waiver

The visa fee waiver expands on a smaller program rolled out in March 2023 that offered free 30-day visas on arrival for seven countries, including India, China, and Russia, provided travelers applied for electronic travel authorization in advance. Until now, most tourists outside South Asia have paid $50-$60 for a short stay visa.

It’s not yet clear whether travelers from the 33 newly-included countries will need an electronic travel authorization.

Sri Lanka ha set an ambitious goal of attracting 3 million visitors and earning $5 billion in tourism revenue in 2025. That’s a sharp rise from 2.05 million tourists and roughly $3 billion in 2024.

“The initiative is a strong step forward in making Sri Lanka more accessible and competitive as a destination,” said Amrit Rajarathnam, Managing Director of hospitality company Island Life, Sri Lanka. “While it may not fully close the gap to the 3 million visitor target for 2025, it’s expected to generate a meaningful boost in arrivals. Globally, the current trend in tourism-driven countries is to adapt the visa-free format.” 

What More Is Needed to Boost Arrivals?

While industry leaders support the visa fee waiver, they warn it cannot stand alone.

“For most visitors, what truly matters is an efficient online visa process, which Sri Lanka already offers,” said Malik J. Fernando, chairman of the Sri Lanka Tourism Alliance. “The visa initiative should not serve as a smokescreen for the ongoing absence of a coherent international marketing campaign. Despite repeated proclamations, no meaningful effort has materialized, even though funds have long been available.”

Fernando said cutting visa costs is not enough to solve deeper problems in the sector. The failure to properly position Sri Lanka is doing “real harm” he said. “It contributes to depressed room rates across all categories of accommodation and deters foreign direct investment, which remains significantly below that of regional competitors due to weak margins. Ask any hotelier.”

He also dismissed comparisons to high-volume tourist destinations. “If a traveler chooses Sri Lanka primarily because of a waived visa fee, that reflects a deeper failure: we haven’t communicated why the destination is truly special. The decision to visit should be inspired by the country’s extraordinary offerings, not driven by a minor cost saving.”

A Full Visitor Experience

In March, the Sri Lanka Tourism Promotion Bureau (SLTPB) launched a new promotional campaign: Sri Lanka, A Story for Every Season. The campaign aimed to address seasonality and position the country as a year-round destination.

The government hosted 12 travel influencers from India, the U.K., Hong Kong, Australia, and Portugal in Colombo. SLTPB Chairman Buddhika Hewawasam acknowledged the uphill task ahead, emphasizing the need for international collaboration and long-term strategy. He also pointed to the potential of digital influencers to shape global perception of Sri Lanka.

The campaign aims to generate $110,000 worth of media exposure and engage a wide variety of travel segments. But for industry insiders, that’s not enough.

While the visa fee waiver removes an important barrier, lasting growth will depend on how well Sri Lanka invests in the full visitor experience, Island Life’s Rajarathnam said. “We need to improve both how we promote Sri Lanka and how travellers experience it. That means focused marketing in key markets, better transport between regions, consistent, high-quality service across the country and support for experience-driven hospitality. It’s about making sure people don’t just visit – but want to come back.”

Tourism Numbers So Far…

So far, the tourism arrival in the country has been uneven.

As of July 23, Sri Lanka recorded 1.3 million tourist arrivals for the year, a 4% increase compared to the same period in 2024. But July’s numbers, which were expected to be strong due to the Kandy Esala Perahera festival, fell short as only 145,188 arrivals were logged in the first 23 days of the month. This was far below the expected 277,195.

“The decline in arrivals during June and July is unsurprising,” said Fernando. “These months have traditionally been seen as off-season. Without a consistent marketing campaign that establishes Sri Lanka as a year-round destination, such dips in visitation are inevitable.”

To reach the annual target, Sri Lanka now needs to attract nearly 1.7 million additional tourists before the end of the year. That would require more than 281,000 monthly arrivals—well above the current average. Since January’s peak of 252,761 visitors, monthly arrivals have steadily declined, with June posting just 138,241.

India continues to lead as the top source market with 269,780 visitors so far this year, followed by U.K. and Russia.

As Fernando put it, “Sri Lanka remains an extraordinary destination… but it continues to undersell itself due to weak, fragmented communication. This must change if we are to realise the country’s full potential.”