Deputy Tourism Minister urges locals to uphold visa regulations amid rising concerns
ECONOMYNEXT – Sri Lanka has deported several foreign nationals who were found conducting business activities while on tourist visas, Deputy Minister of Tourism Ruwan Ranasinghe confirmed during a recent tourism sector briefing.
“We have enforced the law on some. We have deported some as well,” Ranasinghe stated, adding that local involvement often complicates enforcement. “When we try to apprehend tourists conducting business while here on tourist visas, we come across locals who are subletting to them. It is the responsibility of citizens to ensure the law of the country is upheld.”
The government’s move comes amid growing concerns about foreign nationals—particularly from Ukraine, Russia, and Israel—engaging in business ventures in coastal towns after Sri Lanka expanded its visa-on-arrival policy following a foreign exchange crisis.
Ranasinghe outlined three categories of concern: foreigners overstaying their tourist visas, those renting properties for commercial activities, and those who are legally investing in the economy through approved channels. He acknowledged there’s been significant discussion around foreigners operating tourism-related businesses in the country, sometimes for periods exceeding five years.
According to Sri Lankan visa regulations, neither employment nor self-employment—paid or unpaid—is allowed under a tourist visa. Officials believe such unauthorized ventures not only violate immigration laws but also negatively impact local businesses and diminish potential tax revenue.
Historically, such activities harken back to the era of the “hippie trail” in the 1960s and 1970s, where backpackers set up small tourism ventures across Asia. More recently, places like Bali have seen Australians open restaurants and tourism outlets under formal investment frameworks like Indonesia’s PT PMA law, contributing significantly to local economies. In 2024, Australians alone accounted for 1.5 million of Bali’s 6.3 million tourist arrivals.
In contrast, Sri Lanka’s legal framework poses higher barriers for small foreign operators to enter the tourism market through official channels. Setting up a company under Section 16 of the Board of Investment Act requires a minimum investment of $250,000, and does not include any tax concessions—making it less accessible for smaller-scale entrepreneurs.
The crackdown aims to preserve economic integrity, protect local businesses, and ensure the country’s tourism industry grows in a sustainable and law-abiding manner.