Lanka includes India, China in free visa on arrival service stopped after Easter Sunday bombings
Colombo: Sri Lanka on Wednesday included India and China in the free visa on arrival scheme to revive the country's tourism sector which witnessed a slump following the Easter Sunday bombings.
In April, Sri Lanka suspended its plans to grant visas on arrival to citizens of 39 countries after the devastating Easter suicide bombings that killed 258 people.
Nine suicide bombers attacked three churches and as many luxury hotels on April 21, in the country's worst terror attacks. The ISIS terror group claimed the attacks, but the government blamed the local extremist group National Thawheed Jammath (NTJ) for the Easter Sunday bombings.
Sri Lanka has re-launched the free visa on arrival scheme, which will be enforced from August 1, for the suspended 39 countries and has also expanded the service to tourists from India and China, Tourism and Christian Affairs Minister John Amaratunge was quoted as saying by the Sri Lanka Mirror news portal.
Previously, India and China were not included in the free visa category. Plans had been made to exempt several European countries from visa fee, but the implementation of this process had been delayed due to the deadly attacks, Amaratunge said during a function held on Tuesday.
The scheme already allowed tourists from Thailand, the European Union, the UK, the US, Japan, Australia, Switzerland, Cambodia.
Originally the scheme was to come into force on May 1 but the security fears after the jihadi bombings forced it to be put on hold.
Sri Lanka's tourist arrivals declined 7.5 per cent in April 2019 compared to the same period last year, according to the Sri Lanka Tourism Development Authority's first monthly report since the terror attacks.
The visas on arrival pilot programme was part of a larger initiative to increase tourist arrivals to the country during the six month off-season period from May to October.
The island nation received 7,40,600 foreign tourists in the first three months of 2019. Around 450,000 Indians visited Sri Lanka last year and the island nation was expecting the total Indian tourist arrivals to cross one million mark in 2019.
The tourism industry expects the arrivals to fully recover in three to four months.
"The recovery is very good," Kishu Gomes, chairman of Sri Lanka Tourism Promotion Bureau said adding that, "In the last 5 - 10 days we have exceed 4,500 tourist arrivals a day on average."
There will be vigorous tourist promotion campaigns by the government in the immediate future, Gomes said.
Tourism revenue makes up 5 per cent of the country's GDP, figures have shown
The bombings, which targeted three Christian churches and three Colombo hotels, killed over 250 people, including 44 foreigners, and injured over 500, including 37 foreigners.
Tourism industry officials said there have been 70 per cent cancellations of prior bookings after the attacks.
The US, China, the UK, India and Australia were among the countries which issued travel warnings on Sri Lanka following the blasts carried out by local extremist group NTJ.
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Iran unrest hits basmati rice exports, prices fall sharply as payment delays mount: Industry body
New Delhi (PTI): Civil unrest in Iran has started impacting India's basmati rice exports to the country, leading to a sharp fall in domestic prices, as exporters face payment delays and mounting uncertainties, an industry body said on Tuesday.
The Indian Rice Exporters Federation (IREF) urged exporters to reassess risks on Iranian contracts and adopt secured payment mechanisms, warning against over-leveraging inventories meant for the Iranian market.
India exported USD 468.10 million worth of basmati rice to Iran during April-November of 2025-26 fiscal, totalling 5.99 lakh tonnes, trade data showed.
Iran is India's top basmati rice export destination, but the current financial year has seen growing stress on order flows, payment cycles, and shipment schedules due to the prevailing instability.
The impact is now clearly visible in domestic mandis. Over the past week alone, prices of key basmati varieties have registered a steep decline, reflecting buyer hesitation, delayed contracts and heightened risk perception among exporters.
The domestic price of basmati rice variety 1121 has come down to Rs 80 per kg from Rs 85 per kg last week, while varieties 1509 and 1718 declined to Rs 65 per kg from Rs 70 per kg.
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"Iran has historically been a pillar market for Indian basmati. However, the current internal turmoil has disrupted trade channels, slowed payments and dented buyer confidence," IREF National President Prem Garg said in a statement.
He said exporters must exercise heightened caution, particularly with respect to credit exposure and shipment timelines.
Importers have conveyed their inability to honour existing commitments and remit payments to India, creating uncertainty for exporters, the federation said.
IREF has issued an advisory and appealed to stakeholders to diversify into alternative markets across West Asia, Africa and Europe to cushion any prolonged slowdown in Iran-bound shipments.
"We are not sounding an alarm, but urging prudence. In periods of geopolitical and internal instability, trade is often the first casualty. A calibrated approach is essential to protect both exporters and farmers," Garg noted.
US Tariff Concerns
The federation also addressed concerns over the recent remarks by US President Donald Trump, indicating that countries continuing trade with Iran may face a 25 per cent tariff.
IREF clarified that Indian rice exports to the US are already subject to a 50 per cent tariff, up from 10 per cent earlier.
Despite this, Indian rice exports to the US have remained resilient. India exported 2,40,518 tonnes of Basmati and non-Basmati rice to the US during April-November 2025-26, compared to 2,35,554 tonnes in the entire 2024-25 fiscal.
The US is the 10th largest market for Indian rice globally and the fourth largest for Basmat rice.
"There is limited clarity on whether the proposed 25 per cent tariff would be levied over and above the existing 50 per cent duty," the federation noted, adding that it does not foresee a significant decline in exports even if tariffs rise further, given the unique position of Indian Basmati in global markets.
However, IREF expressed greater concern over developments in Iran, where disruptions in local markets have affected trade settlements. Importers have conveyed their inability to honour commitments and remit payments to India, creating heightened uncertainty.
While similar crises have occurred in the past, the trajectory of the current situation remains unclear and is expected to cause further disturbances in prices, liquidity, and trade sentiment in the weeks ahead, the federation added.
