The Cabinet of Ministers has ordered the immediate termination of the ongoing procurement process for Sri Lanka’s e-passport personalisation project, raising fresh questions about the financial and technical implications of the proposed deal.
According to a report published in the Sunday Times by journalist Namini Wijedasa, the Department of Immigration and Emigration (DIE) has informed all bidders that the tender process has been cancelled following a directive from the Cabinet. The notification was issued by the Controller General of Immigration and Emigration, who stated that the procurement process had been terminated with immediate effect.
The tender involved the establishment of an e-passport personalisation system, including the Public Key Infrastructure (PKI) required to secure biometric and personal data embedded in modern electronic passports.
Prior to the cancellation, the Ministry of Public Security had reportedly recommended awarding the contract to Thales DIS Finland Oy in partnership with Sri Lankan company Just in Time (JIT). The project envisaged the personalisation of approximately 3.15 million e-passports over several years.
The proposed arrangement required the selected vendor to install and maintain the necessary technological infrastructure at its own initial cost. The government would then reimburse these expenses through a fixed monthly fee based on the number of passports issued, with a guaranteed minimum production volume.
However, concerns emerged regarding the long-term financial obligations attached to the project. According to the Sunday Times report, procurement experts and officials familiar with the process warned of a potential “vendor lock-in” situation. While ownership of the hardware would eventually transfer to the Department of Immigration and Emigration, the system would remain dependent on proprietary software and specialised PKI components controlled by the vendor.
Critics noted that the procurement process did not adequately address future software licensing costs or establish price limits for renewals after the contract period. This omission could have exposed the government to substantial additional expenses in the future, including recurring payments for proprietary software licences and essential operating systems.
Experts also stressed that large-scale digital identity projects require comprehensive exit strategies to prevent government agencies from becoming dependent on a single supplier. They argued that long-term software rights and renewal costs should have been negotiated during the initial bidding stage to protect public funds.
The Cabinet has not publicly disclosed the reasons behind its decision to cancel the tender. It also remains unclear whether the Department of Immigration and Emigration will launch a revised procurement process or seek alternative arrangements for the implementation of Sri Lanka’s e-passport programme.
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