The Cabinet has reportedly instructed the Department of Immigration and Emigration (DIE) to immediately terminate the ongoing procurement process for the e-passport personalisation project.
The tender included the e-passport issuance system as well as the required Public Key Infrastructure (PKI) security system.
PKI is the cryptographic security framework that protects the data stored in the microchip embedded in e-passports.
Previously, the Ministry of Public Security had recommended awarding the tender to the Franco-Sri Lankan joint venture comprising Thales DIS Finland Oy and Just In Time Group (JIT).
Under the proposal, the company was to undertake the personalisation of approximately 3.15 million e-passports over the coming years, including the insertion of biometric data and personal information.
However, last Friday, the Controller General of the Department of Immigration and Emigration reportedly informed all bidding companies by letter that the procurement process had been terminated with immediate effect on the instructions of the Cabinet.
No reason for the decision was provided.
According to previously disclosed details of the tender structure, Thales DIS Finland Oy and Just In Time Group were to install and maintain the required information technology (IT) infrastructure at their own expense. In return, they were to charge €1.04 and Rs. 302.23 per passport.
In addition, the Government was expected to be contractually bound to make payments for a minimum of 60,000 passports per month.
Although ownership of the equipment was to be transferred to the Department of Immigration and Emigration at the end of the contract period, experts had warned of significant concerns relating to the proprietary software and PKI software licences required to operate the system.
In particular, it was noted that the tender documents did not impose any price caps or legal obligations regarding future software licence renewal fees. As a result, the vendor could potentially gain complete control over pricing after the contract period.
Experts also pointed out that annual licensing fees for systems such as Oracle, Microsoft Windows and antivirus software would continue to apply, potentially increasing the project's actual cost by millions beyond the original tender value.
They further emphasised that, when procuring complex IT infrastructure of this nature, long-term software ownership rights and future licensing costs should be clearly defined in advance in order to avoid vendor lock-in.
It remains unclear whether the tender will be reissued or whether the project will proceed under an alternative mechanism.
Meanwhile, some non-Indian companies that participated in the tender process have alleged that the project is ultimately intended to be awarded to an Indian company.
Sri Lanka Mirror © 2026. All rights reserved.
Loading comments…