Madras Security Printers under fire amidst allegations of impropriety
The industry is raising concerns about Madras Security Printers (MSP), an Indian security printing company, which was added late in the bidding process of the Sri Lanka Unique Digital Identity (SL-UDI) Project, with ministerial officials saying that these are unprovoked accusations.
“The SL-UDI project is extremely important because it gives Sri Lanka a digital system which is a high-tech setup that lets people prove who they are online for all government services. If this identity system does not get done properly and fast, all the digital plans for things like healthcare, transport, justice, welfare, finance, and other services will be delayed and will not work well together,” an industry official told the Sunday Times Business on Friday.
A tender was put out in June 2025, floated by India’s National Institute for Smart Government (NISG), and after the first round, companies were checked for basic qualifications, and five Master Systems Integrator (MSI) bidders (companies offering identity solutions) were chosen in October 2025 to move to the next stage, when all started preparing their final proposals.
However, in March 2026—after the deadline for submissions had already been extended, MSP was suddenly added to the list of bidders by the NISG. “Adding a new company so late in the process makes people worry about whether the system is fair, consistent and predictable. This is not just about following proper steps. It is also about public trust and making sure that qualified companies believe the process is fair, clear, and stable. When things change unexpectedly, it can make companies and the public doubt the outcome. People expect these important projects to be managed openly and reliably,” another official pointed out.
However, the Sunday Times Business found out that MSP had filed a court case, and NISG was directed by the Indian courts to include them in the tender process. This is when they were also included, and the resubmission of this tender is slated for next Friday.
“Since they had gone through the legal channels in India, the courts there had directed NISG to include this firm, which is why they are also in the running for this project. However, the project has not yet been awarded, and it is baseless to level these accusations,” a Digital Ministry official told the Sunday Times Business.
Data will be hosted in Sri Lanka, and the Department of Registration of Persons (DRP) is the only entity that would obtain identification-related details from the public, including the biometric data, he added, noting that GovTech and a Sri Lankan IT firm will provide the technical support and maintenance services for the digital ID platform. “None of the companies currently shortlisted for this tender is blacklisted in Sri Lanka,” he added.
In 2023 August, the contract was awarded to MSP headquartered in Chennai, India, by the then government, but allegations arose that the tender was manipulated to favour the company.
Then the following month, the then technology state minister confirmed the disqualification of MSP and expressed hope that they would re-tender at the earliest.
MSP also provides digital liquor stickers to Sri Lanka, and was also in a separate controversy where an investigation was started after finding 44000 liquor bottles with fake MSP stickers.
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