South Asian Technologies gets 5-year contract to supply new vehicle number plates amid registration backlog

Wednesday, 7 January 2026 06:43 - - {{hitsCtrl.values.hits}}

Cabinet Spokesman says Govt. ends a long-standing monopoly in number plate supply
Notes new licence plates will not increase costs to vehicle owners, aims to improve State revenue collection

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa

The Cabinet of Ministers on Monday approved awarding the procurement contract for the printing and supply of vehicle number plates to M/s South Asian Technologies Ltd., in a move aimed at resolving prolonged shortages and delays in the country’s vehicle registration system.

Addressing the weekly post-Cabinet media briefing yesterday, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said the decision comes amid a surge in vehicle registrations following the lifting of import controls in 2025, which led to a sharp influx of new vehicles and exposed weaknesses in the existing system.

He explained that the country had effectively operated under a monopoly arrangement for around 25 years in the supply of number plates, a system the Government now intends to reform. He added that similar changes are also being pursued in other sectors, including medicines, to improve efficiency and transparency.

“Under the new procurement, the contract has been awarded for a period of five years following a competitive bidding process in which four bids were submitted. The agreement includes strict performance conditions,” he said.

Dr. Jayatissa also noted that the introduction of the new supplier will not result in any additional cost to vehicle owners.

He revealed that under the previous arrangement, revenue generated through licence plates was not received by the Government, while a significant cost burden was placed on customers. “The new procurement framework seeks to correct these anomalies, ensure better revenue flows to the State and ease costs for the public,” he added.

Dr. Jayatissa said the Government will closely monitor the implementation of the new contract to ensure timely delivery, system reliability and value for money, as Sri Lanka works to clear the backlog and stabilise vehicle registrations.

The number plate shortage had forced many newly registered vehicles to operate on roads with temporary paper signs, highlighting the severity of the issue and prompting urgent corrective action by the authorities.