Outdated MTD System crashes, delays registrations
Sri Lanka’s Motor Traffic Department (MTD) is facing operational disruptions due to the breakdown of its outdated motor vehicle registration and transfer system.
The decades-old software, implemented in 1996 by local IT Company Informatics, has increasingly failed under mounting data loads and frequent data entry errors, causing delays and inefficiencies that are frustrating vehicle buyers and dealers alike.
The system reportedly crashed again last week, halting MTD operations for over 24 hours. New vehicle owners complained of long delays in receiving registration certificates and number plates.
Newly appointed MTD Commissioner General Kamal Amarasinghe acknowledged the issues, stating that the system has struggled to handle the rising volume of registrations and transfers, leading to instability and extended downtimes.
Although the system was restored shortly after the latest crash, Mr. Amarasinghe noted that input errors, including incomplete or incorrect information, continue to cause processing delays. He emphasised the need for a modern digital platform to handle MTD’s core functions more efficiently.
The current software provider had refused to extend its service agreement beyond January 1, 2025. Since then, the system has been maintained by MTD’s internal IT staff.
However, the situation is further complicated by ongoing corruption investigations.
Several officials have been interdicted or arrested by the law enforcement authorities with recent reports revealing that a Deputy Commissioner and staff members were apprehended for alleged involvement in bribery related to vehicle transfers.
Plans to revamp the system have faced repeated setbacks. A new tender was awarded in 2018 following a 2016 procurement process based on Business Process Re-engineering (BPR) proposals in 2009.
The selected contractor signed agreements to implement a comprehensive end-to-end solution, starting with the issuance of import permits even before vehicles arrive in Sri Lanka.
This was intended to enhance transparency and streamline revenue collection by preventing vehicle identity manipulation.
Despite contract signings, insiders allege that corrupt MTD officials deliberately stalled implementation to protect illicit income streams. As a result, several digitisation projects initiated by the Transport Ministry and MTD remain dormant.
In the meantime, new vehicle owners are left in limbo, often resorting to using printed paper as temporary number plates after paying substantial sums for vehicles and registration.
With the Finance Ministry now working to introduce an integrated digital system linking all state revenue authorities, hopes are pinned on urgent reform to curb corruption, boost efficiency, and deliver a smoother experience to the public.
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