Planning a trip to Sri Lanka? New visa cost changes you need to know

Endowed with scenic landscapes and historical architecture, Sri Lanka is amongst one of the top destinations for Indian tourists. Iconic spots like the ancient city of Anuradhapura, Bentota's serene beaches, and the sacred Temple of the Tooth in Kandy have long been popular destinations for Indians.

Close proximity and relatively short flight times make Sri Lanka an accessible destination, however, recent changes in visa regulations have affected this flow of tourism. Experts reveal that, despite the introduction of stricter visa requirements and increased processing times, tourists continue to throng to Sri Lanka.

To decode how the changes in Sri Lanka visa costs affect Indian tourism, Midday consulted travel expert Mohak Nahata, Founder & CEO of Atlys.

How has the change in Sri Lankan visas affected travel for Indians?
Nahata: Previously, Indians travelling to Sri Lanka could obtain an Electronic Travel Authorisation (ETA) for 20 US dollars. Later, the island country introduced a Visa-Free Scheme for Indian nationals, allowing them to get a free ETA before their arrival. After the Visa-Free Scheme ended, Sri Lanka has now tied up with third-party providers to process visas for Indian and other foreign nationals.

As a result, the visa fees for Indians have increased. While the visa itself may have a standard fee, there is now an additional service charge of around 8-10 US dollars levied by third-party providers for processing the visa application. What this implies is that while Indian nationals could earlier obtain a free ETA under the Visa-Free Scheme, they now have to pay the visa fee plus the third-party provider service charge, which has effectively increased the overall cost of obtaining a visa for travel to Sri Lanka.

Are the recent changes for Sri Lanka visas posing any new challenges?
Nahata: The transition from Sri Lanka's earlier system of obtaining an Electronic Travel Authorization (ETA) directly from the government website to the new process involving third-party providers as an intermediary has introduced some challenges for Indian nationals planning to visit the island nation.

One of the primary challenges is the additional layer of documentation and procedures required when going through a third-party visa processing agency like Third-party providers. This could include providing supporting documents, attending visa application centres for biometrics, and navigating the agency's online application platform, which may not be as straightforward as the previous government-run ETA system.

Furthermore, the involvement of third-party providers has led to an increase in overall visa costs due to the service fees charged by the agency, on top of the standard visa fees. This additional financial burden, although relatively modest, could still be a deterrent for budget-conscious Indian travellers or those making last-minute travel plans.

The transition to the new visa process could also lead to longer processing times, as applications need to go through an additional intermediary, potentially causing delays or uncertainties in travel planning for Indian tourists.

While the challenges posed by the new system are not insurmountable, they do introduce an extra layer of complexity and cost for Indian travellers, who were previously accustomed to the relatively straightforward and cost-effective ETA process. Adapting to the new procedures and factoring in the additional expenses may require some adjustment and careful planning for Indian tourists visiting Sri Lanka.

Has the rise deterred Indians from travelling?
Nahata: Despite the rise in visa fees for Indian nationals travelling to Sri Lanka, the increase does not seem to have significantly impacted the number of Indian tourists visiting the island nation. Here's how the situation is unfolding:

The recent hike in Sri Lanka visa fees, which includes the visa cost itself plus an additional service charge levied by the outsourced visa processing agency third-party providers, has made travelling to Sri Lanka slightly more expensive for Indian tourists. However, Indian travellers continue to throng to Sri Lanka in large numbers, undeterred by the marginal increase in visa-related costs.

Several factors contribute to Sri Lanka's enduring appeal as a popular destination for Indian tourists, offsetting the impact of the visa fee rise. These include the geographic proximity between the two countries, deep-rooted cultural and historical ties, Sri Lanka's diverse attractions catering to leisure and religious tourism and its positioning as a relatively affordable international travel destination.

Industry observers note that the steady flow of Indian tourists to Sri Lanka remains unabated, with no noticeable decline in visitor numbers following the visa fee increase. This resilience in demand can be attributed to Sri Lanka's well-established reputation as a favored travel hotspot for Indians and the perceived value for money it offers, despite the slightly higher visa-related expenses.

While the visa fee hike may have caused some initial apprehension, it appears that Indian travellers have absorbed the additional costs, suggesting that Sri Lanka's appeal as a tourist destination transcends the marginal increase in visa-related expenses for this key source market.

What makes Sri Lanka a lucrative travel destination for Indians? Does India serve as a market source for Sri Lanka?
There has been a surge in tourists travelling to Sri Lanka. With the ongoing financial crisis, many Indians perceive it as a cost-effective destination. Numerous families have also planned their summer 2024 vacations in Lanka.

According to statistics from the Sri Lanka Tourism Development Authority, India was the top source market for tourist arrivals to Sri Lanka in 2019 with over 425,000 Indian tourists visiting, comprising around 18 per cent of the total international arrivals.

While numbers dipped during the pandemic years, India is expected to regain its position as Sri Lanka's leading source market as travel normalises post- Covid. Here are some factors how India does serves as a major source market for tourism in Sri Lanka due to several factors:

Geographic proximity: India and Sri Lanka are neighbouring countries separated by a narrow strip of sea, making travel between them relatively easy and cost-effective.

Cultural ties: The two countries share deep cultural, religious, and historical links dating back centuries, which attracts many Indian tourists interested in exploring Sri Lanka's Buddhist sites, Hindu temples, and cultural attractions.

Affordable destination: Sri Lanka is perceived as a relatively affordable tourist destination for Indian travellers when compared to more expensive international destinations.

MICE tourism: Many Indian companies and associations hold meetings, incentives, conferences and exhibitions (MICE) in Sri Lanka due to its conducive facilities and lower costs.

Leisure tourism: Sri Lanka's beaches, wildlife, hill stations and ayurvedic tourism appeal to Indian leisure travellers.