…withheld over USD 1.4 mn belonging to SL, funds routed through foreign banks
Outsourcing and technology specialist VFS Global, investigated by the National Audit Office (NAO) over the controversial online visa issuance scheme, yesterday (29) expressed its readiness to cooperate with the Auditor General, or any other relevant authority.
In a statement issued through a PR agency, VFS Global claimed that though they, on 07 November, 2024, offered to provide ‘full support and any information which may be required’ to the Auditor General, no response had been received. According to the statement, VFS Global made the offer after hearing of the NAO move to conduct an audit. However, VFS Global remains committed to extend its support to the Auditor General, the company said.
President Ranil Wickremesinghe’s government entered into a controversial outsourcing agreement with GBS Technology Services & IVS Global FZCO (IVS-GBS), V F Worldwide Holdings Ltd (VFS Global) on 21 December, 2023, for provision of e-visa and other related services. On behalf of the government, the Department of Immigration and Emigration entered into the agreement.
The VFS statement claimed as per the terms of this agreement VFS Global had a limited role as technical partner as the IVS-GBS was the prime contractor.
Sources familiar with the issues relating to the agreement, pointed out that the then Controller General of Immigration and Emigration, Harsha Illukpitiya, on 23 September, 2024, was given two years’ imprisonment for contempt of court, following his failure to comply with an interim order related to the issuance of electronic visas.
The Supreme Court bench that gave the order consisted of Justices Yasantha Kodagoda, Janak de Silva, and Arjuna Obeyesekere.
The NAO audit report, dated 03 October, 2025, revealed GBS Technology Services and IVS Global-FZCO, operating under VFS VF Worldwide Holdings Ltd., collected both the 2.5% Social Security Contribution Levy (SSCL) and 18% Value Added Tax (VAT) from visa applicants, between April and August 2024, but conveniently failed to remit these taxes, causing a loss of $ 1,418,360 to the Government ($ 172,970 in SSCL and $ 1,245,390 in VAT).
The audit also revealed the company earned an additional $ 1.8 million from visa-fee-waiver countries, where visitors were exempt from visa fees but were still charged a service fee.
The audit exposed major financial and procedural irregularities, including tax evasion, foreign remittance violations, and breaches of procurement law.
NAO also disclosed that visa fee revenues were routed directly to foreign bank accounts, managed by the private service providers, instead of being deposited into official Sri Lankan government accounts. This practice prevented the govermentt from independently verifying the actual income generated, creating, what the report described as, “a significant accountability gap.”
Top Opposition spokesman Prof. G. L. Peiris repeatedly pointed out that the government entered into a new agreement at the expense of arrangements implemented by Mobitel Private Ltd.
NAO highlighted that the proposals for the new agreement had been submitted on 08 September, 2023, and the Cabinet of Ministers appointed a committee to evaluate it on 11 September, 2023, and approval was granted on 11 December, 2023, and finalised on 21 December, 2023 (SF)