Cash-strapped Sri Lanka to sell long-term visas to rebuild economy

Struggling to get its economy back on track, Sri Lanka on Tuesday (April 26) declared its plan to sell long-term visas to bring in more foreign currency at a time when the island nation is short of dollars.

The Sri Lanka government’s “Golden Paradise Visa Program” states that non-Sri Lankans who deposit a minimum of $100,000 will be allowed to live and work in the country for 10 years.

Since the government needs dollars to rebuild its economy, it has put a condition that the money will be locked in a Sri Lankan bank during the period of stay. “The scheme will help Sri Lanka at a time when we are facing the worst financial crisis since our independence,” media minister Nalaka Godahewa told reporters in Colombo.

Besides, a foreigner spending at least $75,000 to buy an apartment will get five-year visa.

Thousands of demonstrators have hit the streets since April 9, as the government ran out of money for vital imports; prices of essential commodities have skyrocketed and there are acute shortages in fuel, medicines and electricity supply.

Sri Lanka needs at least USD 4 billion to tide over its mounting economic woes, and talks with international institutions such as the World Bank as well as countries like China and Japan for financial assistance have been going on.

Sri Lankan officials were in Washington last week to negotiate with the International Monetary Fund for a bailout.

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India has agreed to extend an additional USD 500 million credit line to help Sri Lanka import fuel.

India has already agreed to defer USD 1.5 billion in import payments that Sri Lanka needs to make to the Asian Clearing Union.

Last week, the Sri Lankan government said it would temporarily default on USD 35.5 billion in foreign debt as the pandemic and the war in Ukraine made it impossible to make payments to overseas creditors.