Cabinet Approves Free Visa Rollout for 39 Countries 📈

Sri Lanka’s Cabinet has cleared draft regulations for a six-month free visa program to boost tourism competitiveness. The move aims to lower entry barriers for key markets despite an estimated annual visa revenue loss of US$ 66 million. • Policy Scope The program targets passport holders from 39 countries, including major source markets like India, China, UK, Germany, France, and the US. Regulations now head to Parliament for final approval. • Economic Trade-off While the Treasury expects a revenue dip, the policy is designed to stimulate indirect gains across hospitality, transport, and retail sectors through higher visitor spending. • Current Performance March Mid-Month: 151,693 arrivals (1–25 March), a sharp 22% YoY decline due to regional hostilities and air route disruptions. Cumulative 2026: 708,348 arrivals to date, still reflecting a 4.45% YoY growth compared to 2025. • Risk Factors Authorities warned that Middle Eastern airspace disruptions could cost the tourism sector between US$ 10 million and US$ 15 million in weekly revenue, highlighting the industry's vulnerability to external shocks.