Sri Lanka is now inviting Indian firms to bid on developing a new digital ID system. Announced today, the initiative is being managed by the Ministry of Digital Economy (MoDE) and will be built on the open-source Modular Open-Source Identity Platform (MOSIP), a framework originally developed in India for scalable digital identity solutions.
MOSIP-Based System and Funding Details
The project, officially named the Sri Lanka Unique Digital ID (SL-UDI), will establish a foundational digital identity that combines demographic data with biometric identifiers such as fingerprints and facial images. Iris recognition is planned for future phases. The government plans for the first digital IDs to be issued to pilot groups by mid-2026, with nationwide deployment expected in subsequent years.
The total budget for SL-UDI is around Rs 20 billion, with India contributing Rs 10.4 billion as a grant and Sri Lanka funding the remaining costs through a mix of direct allocations and in-kind support. India’s National Institute for Smart Government (NISG) is overseeing the tender process, reflecting the strong bilateral collaboration between the two nations in the digital identity space. Pre-qualification submissions are due by August 8, 2025, and final bids will close on October 8.
Regional Trends and Privacy Concerns
This move aligns Sri Lanka with a broader regional trend, as countries across South Asia invest in digital identity systems to streamline government services, improve financial inclusion, and enhance security. India’s Aadhaar platform, which has become the world’s largest digital ID system, serves as a model for the SL-UDI project both technically and architecturally.
However, the decision to limit bidding to Indian firms has sparked debate among local civil society organizations. Critics have raised concerns about potential foreign access to sensitive biometric data and broader questions about digital sovereignty. MoDE has responded by emphasizing that contractual terms will ensure that all personal data remains under Sri Lankan jurisdiction and control. As the Sunday Times reports, officials have stressed that no foreign entities will have access to the central biometric database.
If successful, the SL-UDI system is expected to significantly improve identity verification processes for public services, banking, and welfare distribution. Beyond administrative efficiency, officials believe it could help curb fraud and bolster national security, while providing citizens with a secure digital identity in both physical and electronic forms.
Source: Daily News, Sunday Times
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By Ji-seo Kim
