How COPF exposed Sri Lanka’s visa scam

The fight for justice is far from over. The Supreme Court has scheduled the next inquiry for January 2025, and COPF continues to push for full transparency and accountability. Their work has set a precedent, showing that even the most powerful deals can be undone when public funds and integrity are at stake. This case is not just about visas – it’s about upholding the rule of law and ensuring that public officials serve the people, not themselves. COPF’s relentless efforts have shown the power of accountability and how one committee’s determination can make all the difference

By Yasu-e Karunaratne

Millions of tourists apply for visas every year to explore Sri Lanka. But in 2023, something went very wrong with Sri Lanka’s visa system, leaving many tourists and citizens questioning how such a simple process could turn into a national controversy.

A controversial deal

In December 2023, a quiet but significant agreement was made between Sri Lanka’s Department of Immigration and Emigration and a foreign consortium. This consortium (GBS Technology Services & IVS Global-FZCO (IVS-GBS) and VF Worldwide Holdings Ltd., (VFS Global)), was given exclusive rights to process online visa applications. The decision was made without competitive bidding, which would typically ensure that the best deal is chosen for the country. Instead, the public found themselves facing a shocking increase in visa fees – from the previously affordable $ 1 fee charged by Mobitel to a staggering $ 25 per visa.

This move sparked outrage, especially when it became clear that cheaper, more efficient alternatives like Mobitel, which had been managing the service since 2012, were completely sidelined. Despite Mobitel’s proven track record and offers to upgrade the system at a fraction of the cost, their proposal was ignored. 

Committee on Public Finance steps in

The irregularities in the visa deal might have gone unnoticed if not for the Committee on Public Finance (COPF), led by its Chairman Dr. Harsha de Silva. COPF is responsible for scrutinising public spending, ensuring transparency in Government deals, and protecting public funds. Dr. Harsha de Silva, along with his team, uncovered the truth behind the visa deal. It bypassed competitive bidding, lacked transparency, and failed to protect Sri Lanka’s financial interests.

Dr. de Silva was clear in his commitment to accountability, stating, “As Chairman, it is my duty to ensure that public funds are protected and that no deal, especially one involving public revenue, escapes scrutiny.”

Thanks to the efforts of COPF, the scandal caught the attention of the Sri Lankan judiciary. In August 2024, the Supreme Court issued a landmark ruling, suspending the controversial visa scheme. The court ordered the immediate restoration of the previous system run by Mobitel, which was known for its efficiency and lower costs. The ruling marked a significant victory in the fight for transparency

A data breach that shocked the nation

In May 2024, another major issue arose. A massive data breach was reported by travel vlogger Will Davis, who revealed that personal information, including names, addresses, and passport numbers of visa applicants, was mistakenly sent to unintended recipients. The breach exposed the private data of thousands of tourists, putting their security and privacy at risk.

COPF immediately flagged this breach, linking it to the rushed and poorly managed contract. It became clear that the mishandling of the visa system was not just a financial issue but a threat to the safety of those visiting Sri Lanka.

COPF’s investigation revealed that Mobitel, the previous visa service provider, had submitted several proposals to upgrade the system, all at a much lower cost – just $ 1 per visa. Despite this, the foreign consortium’s expensive proposal was chosen. The question remained: why was Mobitel ignored, and why did Sri Lanka end up paying so much more for a less secure system?

A report that exposed the truth

On 12 July 2024, the Report of the Committee on Public Finance on Outsourcing Online Visa and Passport Application Services between the Consortium and the Department of Immigration and Emigration of Sri Lanka was presented to Parliament by Dr. Harsha de Silva. The report is now available online, revealing the full scope of the visa scam and highlighting critical issues.

The Concluding Remarks of the report (Section 4) state:

• The absence of a competitive bidding process in procuring the services of the Consortium prevented the Department of Immigration and Emigration (DOIE) from obtaining the best value for money.
• The fees charged by competing destinations are significantly lower, and if the System Specification Requirement (SSR) had been finalised, DOIE could have conducted a truly competitive procurement process.

The report also identified several unresolved issues:

1. Unclear fee structure: There are discrepancies in the service fees, with convenience fees lacking transparency.

2. Data breach and termination: The existence of a data breach could trigger a termination clause, which requires further investigation.

3. Conflicting exclusivity: The exclusivity granted to the Consortium contradicts the presence of other existing service providers.

4. Uninvested funds: The reported $ 200 million investment remains unaccounted for and unexplained.

The COPF made several key recommendations (Section 5), including:

• A comprehensive forensic audit by the Auditor General into the entire procurement process, which was already initiated by the Auditor General as of 4 June 2024. COPF urged that this audit be completed promptly to determine the necessary actions, which could involve terminating the Consortium’s agreement or amending specific clauses.
• Immediate actions by the Ministry of Public Security (MOPS), DOIE, and the Sri Lankan Data Protection Authority to review the data breach report by KPMG and ensure full data security for all Electronic Travel Authorisation (ETA) applications.

 The Supreme Court steps in

Thanks to the efforts of COPF, the scandal caught the attention of the Sri Lankan judiciary. In August 2024, the Supreme Court issued a landmark ruling, suspending the controversial visa scheme. The court ordered the immediate restoration of the previous system run by Mobitel, which was known for its efficiency and lower costs.

The ruling marked a significant victory in the fight for transparency. 

As Dr. de Silva pointed out, “This victory is a testament to the power of accountability. Without the diligent work of COPF, this injustice would have continued unchecked.”

The irregularities in the visa deal might have gone unnoticed if not for the Committee on Public Finance (COPF), led by its Chairman Dr. Harsha de Silva. COPF is responsible for scrutinising public spending, ensuring transparency in Government deals, and protecting public funds. Dr. Harsha de Silva, along with his team, uncovered the truth behind the visa deal. It bypassed competitive bidding, lacked transparency, and failed to protect Sri Lanka’s financial interests

Consequences for defiance

However, the saga did not end there. On 25 September 2024, the Supreme Court ordered the remand of Harsha Ilukpitiya, the Controller General of Immigration and Emigration, for contempt of court. Ilukpitiya had failed to comply with the Supreme Court’s order to suspend the new visa system, deepening the scandal and showing the lengths to which those involved were willing to go to maintain control over the corrupt system.

With Ilukpitiya now facing legal consequences, the message was clear: no one, no matter their position, is above the law.

 What’s next?

The fight for justice is far from over. The Supreme Court has scheduled the next inquiry for January 2025, and COPF continues to push for full transparency and accountability. Their work has set a precedent, showing that even the most powerful deals can be undone when public funds and integrity are at stake.

This case is not just about visas – it’s about upholding the rule of law and ensuring that public officials serve the people, not themselves. COPF’s relentless efforts have shown the power of accountability and how one committee’s determination can make all the difference.

 A call for justice

As Sri Lanka’s citizens demand accountability and the restoration of transparency in Government, COPF stands at the forefront of the fight. Dr. de Silva and his team have proven that with perseverance and leadership, corruption can be exposed, and justice can be served.

The work of COPF continues, and so does the battle for a fair and accountable government. Thanks to the relentless efforts of the Committee on Public Finance, justice is being served.

(The writer served as an Economist at the Committee on Public Finance.)