The Sri Lanka Tourism Develop Authority (SLTDA) recently announced the strategic decision (further approved by the Cabinet of Ministers) to attract ‘digital nomads,’ through the provision of one-year visas. The decision is expected to have a resulting knock-on effect in the mid to long-term on Sri Lanka’s economic re-growth and tourism opportunities, helping to position Sri Lanka as a favourable destination for digital nomads. 

Good Life X (GLX) sat down with Sri Lankan tech entrepreneur (Silicon Valley and Colombo) and GLX Board of Advisory Member Mangala Karunaratne to discuss more on the topic. Particularly, that whilst digital nomads are a fast-growing segment within the global travel and tourism industry, whether Sri Lanka is ready to offer these travellers enough incentive and digital connectivity in order for them to thrive.

Karunaratne is the Co-founder and CEO of Calcey Technologies: a privately held boutique professional services firm specialised in developing digital products for global clients; and a Director of FARO (Foundation for Advancing Rural Opportunity), a nonprofit organisation that actively assists rural youth in Sri Lanka to find sustainable employment in the outsourcing industry.

Q: Is Sri Lanka ready to receive and cater to digital nomads? 

Recently, influential French travel and tourism operator Club Med ranked Sri Lanka as the world’s second-best for digital nomads in 2021, ahead of Singapore and several other countries. 

The Club Med report stated more work from home and less cramped commutes and limp office plants, with the idea of switching home offices for sunshine, lush landscapes and an explosion of culture is becoming increasingly popular for these digital nomads.

However, Karunaratne, stated: “At a very broad level, Sri Lanka is in a position to welcome digital nomads. In recent years, infrastructure that supports the aspirations of digital nomads has slowly begun to come up in various parts of the country, particularly the southern coast and the eastern coast. However, if the visa programme is to be attractive, it needs to be in line with global norms in terms of flexibility, simplicity, cost, and other elements.”

With Sri Lanka’s attempt to also boost travel and tourism across diverse markets, the expansion into digital nomads goes hand-in-hand with the decision and plans to expand Sri Lanka’s experiential and entertainment offering.

Q: What specifics are digital nomads on the lookout for when sourcing destinations? 

The desire to experience the best that life has to offer, whilst working remotely has led to a rise in digital nomads. This data was collected and assessed with the growing demand for the nomadic lifestyle. It consciously put beautiful landscapes before bustling cities to limit and restrict stress, allowing workers to fully embrace the world – the ethos behind the digital nomad lifestyle. 

The study by Club Med also looked at cost of living, safety, average internet speed, presence of nature and wellness spots, as well as the number of both relaxing and adventurous activities in each country, of which Sri Lanka ranked well.

Karunaratne stated: “The entire philosophy behind the lifestyle of a digital nomad is to uncouple themselves from the constraints of a single geographic location, while still being able to deliver on their professional commitments without any drop in quality. So these individuals would want everything a regular traveller would, but would also want a lot of flexibility, particularly when it comes to immigration and emigration processes and top-notch internet connectivity. Sri Lanka needs to improve on the latter two.”

Q: What’s the most attractive thing Sri Lanka has to offer this sect of traveller? 

Sri Lanka is considered a paradise for nomads, due to its varying climates and beautiful work backdrops - from lush green mountain tops to coral reefs and golden beaches, having recently scored 238 out of 320, on the Club Med report.

Having lived and worked in a country that is vastly equipped to cater to digital nomads (USA) and working closely with tech-preneurs, Karunaratne, the Silicon Valley Entrepreneur, stated: “There are very few destinations that can offer the variety Sri Lanka offers within such a small land area. Colombo is well on its way to becoming a modern, cosmopolitan city. World-class surfing spots, picture-perfect beaches, and breathtaking wildlife sanctuaries can be reached in a few hours. The continued build-out of a nationwide highway network means that connectivity is ever-improving and once-sleepy villages in even the most remote parts of the country are slowly becoming hives of activity. To be fair, Sri Lanka may not be perfect when compared to developed nations when it comes to infrastructure; however as I said before, people come to Sri Lanka for what it is.”

Whilst it is understood that facilitating digital nomads as tourists have been a growing trend in global tourism industries and that authorities have identified the availability of high-speed internet connections for communication, long-term visas, affordable accommodation, and tax exemptions for earnings, among others, as the main factors needed to attract them – Sri Lanka is yet to be proven as exceptionally appealing in this light for the proposed target audience, but remains to have the potential to soon overcome this challenge.

With this in mind, Sri Lanka has begun amping up its lifestyle and urbanisation offering with plans to target South Asia’s urban tourism with state-of-the-art co-working spaces and welcoming communities. In addition, with telecommunications providers already rumoured to have begun work on 5G connectivity, coupled with already present remote working facilities as the ‘work from home’ phenomena becomes a norm in most urban parts of Sri Lanka – the island nation is working towards bridging the connectivity and convenience gap.

Whilst Sri Lanka has been a digitally connected nation for decades, it was during the 2020 COVID-19 pandemic and the ensuing lockdown that really pushed both the public and private sector to go digital in order to continue with its (albeit slow) economic growth. 

Since then, the digital revolution in Sri Lanka has proceeded to grow from strength to strength, adapting and developing at a never before seen pace, as they catch up with more developed nations. With this in mind, tech-preneurs and MNCs may have their work cut out for them, but are working diligently to bring the nation up to speed and bridge the gap that may otherwise be seen as less desirable for digital nomads.

Q: What is the gap that needs to be bridged to offer what Sri Lanka has in its best form?

Whilst our natural resources, national sites, and overt hospitality is apparent – where Sri Lanka continues to lack is its seamless and efficient digital and technological offering nationwide. In addition, concerns regarding ease of travel and use of public transport for these foreign visitors and the need for better management of the same, continue to rise. With much of Sri Lanka still lacking in physical and digital connectivity, the entrance of digital nomads to our shores leaves them focused on metropolitan cities such as Colombo and heavily tourist-focused destinations such as in the Southern Province of the island. 

According to Karunaratne, the gap that needs to be met arises from the visa itself. “When it comes to a successful digital nomad visa program, you really need to get the details right. For instance, we still don’t know a lot about the eligibility criteria. Instead of trying to build a horse by committee and ending up with a camel, I think we should look at a destination like Dubai, which launched a remote worker visa program in October 2020. That program is very clear and straightforward. The visa is valid for one year and is renewable. You get to bring your family along and are entitled to every standard service a resident benefits from such as telecoms, utilities, and schooling. The visa costs $ 611 in total, and you just need to show an average monthly income of $ 5,000. This kind of clarity, simplicity, and ease of application is what we need to aim for too. 

“Further, we need to improve the delivery of public services (especially legal, public security, transport, logistics, and banking) and remove unnecessary red tape. Digital nomads are often early adopters as well and are likely to be customers of fast-growing neo-banks like Revolut or Monza, and fintechs like Stripe. So we need to ensure that the local banking system is plugged into those networks. The taxation side of things (particularly if double-taxation treaties are in place) will have to be looked at too.

“At the end of the day, this is a great move for Sri Lanka. It will bring in much-needed currency inflows, and will also help energise the local startup ecosystem. I admit that there is a lot to be done, things are not 100% perfect right now, and fixing them may take time, but you need to start somewhere, take that first step, and then keep up the momentum.”