To curb corruption and deliver more efficient, transparent public services, the National People’s Power-led government of Sri Lanka unveiled an ambitious digitalization plan earlier this year. Spearheaded by President Anura Kumara Dissanayake, the program introduced three key digital services GovPay for government payments, extending the Presidential Fund to divisional secretariats, and issuing birth, marriage, and death certificates through diplomatic offices as part of its roadmap toward a digitally empowered society.
The Company Registrar’s Department was celebrated as a pioneer of this initiative, having launched its digital platform back in April 2018 in partnership with KPMG’s IT division. The system allowed companies to be registered entirely online, streamlined issuing of certificates, and facilitated import clearances through Customs — even helping Sri Lanka climb in ease-of-doing-business rankings. During the COVID-19 era, the digital platform enabled over a thousand companies to register seamlessly.
However, the system came to a grinding halt on Saturday (12th), leaving critical operations paralyzed. The department reportedly has been unable to restore functionality since, and the lack of a disaster recovery mechanism has exacerbated the situation.
According to reports, the digital infrastructure has been operating without maintenance since the end of May this year, after the government failed to renew its agreement with KPMG. The system, despite being crucial for the economy, was left in the hands of officials who lacked adequate technical knowledge or a clear strategy for sustainability.
Sources allege that senior officials may have intentionally let the system collapse to revert to manual, paper-based processes, which would enable corrupt practices. Others suggest a motive to award the maintenance contract to a different company.
The Company Registrar’s Department, which falls under the Ministry of Trade, Commerce, Food Security, and Cooperative Development, handles company incorporations, issuing of vital records, director changes, and tender registrations functions vital to business and government operations. Its daily losses from the outage are estimated at LKR 7–8 million.
What began as a model of transparency and efficiency is now facing accusations of gross mismanagement and sabotage. Observers point out that while technical failures and human errors are inevitable, the failure to maintain such a mission-critical system and the lack of preparedness to recover raises serious questions about accountability.
At a time when the government is promoting its vision of a digitally transformed Sri Lanka, the collapse of one of its flagship digital services threatens not just the credibility of the Company Registrar’s Department but also casts doubt on the broader digitalization agenda.
As of now, the department remains inoperative, and stakeholders are left wondering: where is the digital transformation headed, and who will take responsibility for ensuring its success, or its failure?
