Amila Prasanga and Ganeshan Wignaraja
International tourism is again attracting controversy, this time due to visitors on tourist visas running businesses in developing Asian countries. Since the Russian invasion of Ukraine in 2022, Sri Lanka has allowed Russians and Ukrainians to enter the country without paying visa fees in a bid to boost tourism. Desperate for foreign exchange following its sovereign debt default in 2022, Sri Lanka has turned a blind eye to some of these visitors running businesses.
As many as 197,498 Russians and 5082 Ukrainians visited Sri Lanka in 2023 — 13.6 per cent of total tourist inflows. But data is lacking on how many have stayed beyond a 60-day tourist visalimit. In February 2024, Sri Lanka abruptly terminated visas for long-staying Russians and Ukrainians.
This was in response to massive public outrage over a so-called ‘white-only party’ at a nightclub, leading the Russian business owner to apologise and cancel the event. This incident had little effect on Sri Lanka’s neutral foreign relations with Russia and Ukraine but has sparked a policy debate on the benefits of tourists running businesses in developing Asian countries.
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