Investment

Advocata Institute welcomes free visa entry expansion, calls for long-term liberalisation and policy stability

Originally appeared in the Daily FT

The Advocata Institute, while welcoming the Government’s recent decision to waive visa fees for tourists from 40 additional countries, called for broader liberalisation of the visa regime to fully unlock economic opportunities through tourism.

Sri Lanka is currently aiming for 3 million tourist arrivals and $ 5 billion in revenue this year. Advocata believes that open, clear, and consistentw visa policies, combined with a welcoming environment, investment-friendly regulation, and high-value targeting, will be essential to achieving that goal.

“This is a step in the right direction,” Advocata Institute CEO Dhananath Fernando said. “Tourism is one of the few sectors in Sri Lanka with immediate job-creating potential and strong multiplier effects across the economy. Reducing barriers to entry – even something as simple as waiving a fee – can go a long way in making Sri Lanka more attractive as a destination.”  The Institute emphasised that this should not be a one-off gesture, but the start of a broader liberalisation agenda. Advocata called for Sri Lanka to work towards reverting to at least its pre-2012 visa regime, under which 84 countries were eligible for visas on arrival, without needing to apply for electronic travel authorisation (ETA) in advance. This system was more consistent, easier for travellers, and better aligned with international best practices.

Advocata recommends that Sri Lanka introduce visa-on-arrival access for travellers who hold valid multiple-entry visas to high-screening countries, such as the US, the EU, the UK, or Australia. These travellers have already undergone extensive vetting and, in many cases, are eligible to enter more than 50 countries visa-free based on their existing travel history.

Additionally, the Institute suggested exploring the introduction of a two-year, renewable visa-on-arrival for citizens or permanent residents of countries with per capita incomes at least four times that of Sri Lanka. This would encourage long-stay travel, remote/nomad work, and academic or business exchange from high-income countries—contributing to knowledge transfer, professional networking, and investment.

Advocata also highlighted the importance of visa policy consistency and better user experience. Sri Lanka’s visa regime has undergone several abrupt changes over the past decade, contributing to confusion among both tourists and travel agents. While visa fees may be waived, tourists are still required to apply online for an ETA, a process that often results in credit card payment issues (for those from countries that do not have the fee waiver) and poor usability.

While the removal of visa fees is a welcome reform, Advocata cautions that this alone is not enough to ensure tourism success. Sri Lanka must also tackle the deeper structural issues in the sector. This includes attracting higher-spending tourists through well-targeted global marketing campaigns, and creating the right investment climate to bring in the infrastructure and innovation needed for long-term growth.

Advocata Institute urges Govt. to uphold electricity sector reforms

Originally appeared in the Daily FT

The Advocata Institute yesterday called on the Government to reaffirm its commitment to the critical reforms initiated by the 2024 Electricity Act.

The think tank emphasised the necessity of legally separating the Ceylon Electricity Board’s (CEB) functions and fostering a competitive and transparent electricity industry.

“The 2024 Electricity Act was a landmark step towards a more efficient and accountable energy sector,” said Advocata Institute CEO Dhananath Fernando. “Sri Lanka cannot afford to fall back into a monopoly-driven model at a time when attracting private capital and enhancing efficiency are critical to economic recovery and energy security.”

In its newly released paper, “Powering Forward: Why Unbundling the CEB is Critical for Sri Lanka’s Energy Future,” Advocata warns that proposed amendments to the 2024 Electricity Act threaten to reverse decades of progress in the sector. The Institute states that such reversals could severely undermine Sri Lanka’s economic and fiscal stability.

The paper critiques some of the 2025 amendments to the Sri Lanka Electricity Act, which seek to reconsolidate the CEB by placing generation, transmission, and distribution under 100% State control. Advocata argues that this reversal would entrench inefficiencies, deter private investment, and further strain already constrained public finances.

The position paper outlines three key reasons for why Sri Lanka should reconsider reconsolidating generation, transmission, and distribution under 100% State control.

Bullets

  • Sri Lanka’s challenges demand private capital: Continued reliance on public financing to cover the CEB’s losses and infrastructure needs is fiscally unsustainable. Circular debt, State guarantees, and legacy liabilities already burden the Treasury, threatening Sri Lanka’s ability to maintain its primary surplus and meet International Monetary Fund (IMF) commitments. They also undermine the country’s creditworthiness, limiting access to capital markets and affordable borrowing. Unbundling the electricity sector can help address this by creating a range of investment opportunities, allowing private investors to engage in specific segments that align with their risk-return preferences.

  • Unbundling the electricity industry has economic merit: Drawing on some global examples, the paper demonstrates how unbundling has improved operational efficiency, transparency, and service delivery, particularly when supported by competitive tendering and strong regulatory oversight.

  • Strategic interests can be protected without full State ownership: Global and local experience show that strategic assets in generation, transmission, and distribution can be safeguarded through strong regulation, public-private partnerships, and majority State ownership, without full State monopolisation. The paper highlights the case of Lanka Electricity Company (LECO), a publicly owned but commercially governed distributor that has consistently delivered operational efficiency and innovation due to competitive pressures. Rather than dismantling LECO and absorbing it into a centralised, 100% State-owned entity (as proposed), the paper argues that this successful model should be replicated and scaled.

The full position paper is available for download at: https://shorturl.at/Bijus

(https://www.advocata.org/media-archives/2025/07/09powering-forward-why-unbundling-the-ceb-is-critical-for-sri-lankas-energy-future).