The National People’s Power (NPP) government’s commitment to clean governance is facing one of its toughest early tests as controversy deepens over the Ministry of Health’s proposed US$10 million (more than LKR 3 billion) Health Digitalization Project.
At the centre of the dispute is E-W Information Systems (EWIS), a company whose previous involvement in the Ministry’s drug procurement software project has been extensively scrutinised by Parliament and state auditors. Reports that EWIS is being considered for a flagship national digital health initiative have triggered strong opposition from medical professionals, governance advocates and procurement watchdogs, who question whether lessons from past procurement failures have truly been learned.
The proposed project would oversee critical components of Sri Lanka’s digital healthcare infrastructure, including patient information and nationwide health management systems. Critics argue that such a project demands the highest standards of transparency, technical competence and procurement integrity.
EWIS’s earlier Drug Supply Information System (DSIS), introduced to modernise medicine procurement and distribution, became the subject of investigations by the Committee on Public Accounts (COPA), the Committee on Public Enterprises (COPE) and the Auditor General. Parliamentary proceedings highlighted persistent operational failures, years of costly modifications and concerns over the value delivered for public funds. The Ministry of Health ultimately replaced the system with the locally developed “Swastha” platform at a significantly lower cost to restore inventory management.
EWIS has rejected claims regarding the overall cost of the project, maintaining that its original software contract was valued at approximately LKR 223 million and that later expenditure reflected separate infrastructure, maintenance and expansion requirements rather than shortcomings in the original agreement. Nevertheless, the company’s previous performance continues to attract close public scrutiny.
Further controversy surrounds claims that EWIS had previously been blacklisted from government procurement following concerns arising from its earlier engagement with the Ministry of Health. While the precise legal status and scope of any blacklist remain matters requiring official clarification, critics argue that any company previously subjected to procurement sanctions should undergo the highest level of due diligence before being considered for another multi-billion-rupee government contract.
The All Ceylon Medical Officers’ Association (ACMOA) has formally requested an investigation into the procurement process and called for the project to be suspended pending an independent audit. The association has also questioned whether the proposed digital platform duplicates electronic health systems already available within the public sector, raising concerns over the efficient use of scarce public resources.
For the government, the controversy extends well beyond a technology contract. It has become a defining test of whether the administration’s repeated promises to dismantle entrenched procurement networks and strengthen institutional accountability will be reflected in practice.
Government leaders have consistently pledged to eliminate corruption, strengthen public financial management and restore confidence in state institutions. Those commitments now place every major procurement decision under heightened public examination.
Importantly, despite widespread speculation, no contract has been awarded to EWIS. Ministry officials continue to evaluate the project amid objections from medical unions, ongoing reviews of possible system duplication and donor procurement requirements. Whether the government proceeds with the current process or orders a fresh, fully competitive evaluation is likely to become an important indicator of its broader commitment to procurement reform, transparency and the rule of law.
With billions of public rupees at stake and the credibility of Sri Lanka’s healthcare digital transformation hanging in the balance, the outcome of this procurement process may prove to be as significant politically as it is technologically.