By Lanka Biz News
A Broken System in Urgent Need of Fixing
Sri Lanka’s economy is slowly finding its feet again, but much of the machinery that supports our public institutions is still stuck in the past. Nowhere is this more evident than in our procurement systems—those unseen but powerful processes that determine how governments buy goods and services, including everything from highways to software.
According to Dr. Hans Wijayasuriya, a key figure in Sri Lanka’s digital transformation efforts, the outdated procurement structures are more than a nuisance—they’re a fundamental bottleneck to our economic and digital progress. Speaking at a recent event hosted by the Chartered Institute of Procurement and Supply, he stressed the urgent need to move toward agile, outcome-based procurement systems to unlock real, measurable progress.
“A fundamental shift from traditional, process-heavy public procurement to an agile, outcome-based model is paramount to accelerating Sri Lanka’s digital economy,” said Dr. Hans.
His warning couldn’t come at a better time.
The Core Issue: Waterfall Procurement That Doesn’t Work Anymore
Most of our current procurement models follow a rigid “waterfall” approach. This means every detail of a project must be planned and approved upfront—from technical specifications to vendor criteria. While this may seem like due diligence, it often results in massive delays, cost overruns, and poor-quality outcomes, particularly in areas like IT and digital services where needs change rapidly.
Let’s be honest—how many of us have heard of software systems that were outdated before they even launched, simply because the procurement took years?
The real cost of these slow, inflexible systems is innovation. Vendors can’t pitch new ideas. Agencies can’t adapt to changing conditions. And the public? They’re stuck waiting for services that should’ve been delivered yesterday.
Why Procurement Reform Is Essential to the Digital Economy
Sri Lanka is aiming high. Ambitious projects like GovPay, Digital Identity systems, National Data Exchanges, and cashless government services are in the pipeline. But without reforming procurement, these projects risk being choked by the very processes meant to deliver them.
Dr. Hans rightly emphasized that digital transformation cannot succeed if it is shackled by bureaucratic procurement. These projects require adaptability, speed, and continuous feedback—things traditional systems are inherently bad at delivering.
The Alternative: Agile and Outcome-Based Procurement
So, what’s the solution?
Agile, outcome-based procurement is about flipping the script. Instead of asking, “What exactly are we buying?” the new approach asks, “What problem are we solving—and how do we measure success?”
This model prioritizes:
- High-level goals, not micromanaged specs
- Shorter contract cycles, with built-in checkpoints
- Multiple vendor collaborations rather than single, monopolistic contracts
- User feedback loops, making it easier to adjust course along the way
- This is not about reducing transparency or accountability. On the contrary, it’s about improving both—by focusing on results instead of red tape.
Examples That Worked — Even in Sri Lanka
This isn’t just theory. When Sri Lanka adopted agile principles for certain public IT projects—like the e-Revenue License system and LankaGate middleware platform—results were impressive.
Rather than hiring a single vendor to build a giant, inflexible system, the projects were split into smaller components. Multiple teams worked in parallel(Procurement Systems). Government officials and developers interacted frequently, testing and refining each module. The systems were delivered faster, with better alignment to real needs.
So yes, we can do this in Sri Lanka—it’s just a question of making it the norm rather than the exception.
The Way Forward: How to Modernize Sri Lanka’s Procurement System
Here are a few realistic, actionable steps that could transform our system:
- Shift Focus From Process to Outcomes
Procurement officials should define what success looks like, not every technical detail(Procurement Systems). Whether it’s building a citizen portal or automating court systems, outcomes—not outputs—should drive the conversation.
- Pilot Agile Procurement Projects
Instead of overhauling everything at once, pick one or two key digital initiatives (like GovPay enhancements) and run them as agile procurement pilots. Use what works, refine what doesn’t, and scale from there.
- Create a Digital Procurement Platform
Move tenders, evaluations, and reporting online. A centralized procurement portal should include e-tendering, vendor dashboards, digital performance tracking, and transparency features like public dashboards and audit logs.
- Train and Upskill Procurement Officers
Introduce specialized training on digital procurement, agile contracting, and vendor collaboration. Government teams need more than compliance knowledge—they need strategic thinking.
- Encourage Vendor Innovation
Government agencies should issue problem statements, not rigid specifications. Let vendors propose creative solutions, pilot them, and scale successful ideas(Procurement Systems). That’s how we spark innovation in the public sector.
- Reform Legal and Regulatory Frameworks
Many procurement laws are over 30 years old. Update the legal framework to support outcome-based models, protect iterative procurement, and reduce penalties for adaptive change (as long as transparency is maintained).
The Cost of Doing Nothing
If we don’t fix procurement, Sri Lanka risks more than project delays. We risk falling behind regionally. Countries like India, Vietnam, and Estonia are moving fast(Procurement Systems). Their public sector innovation is backed by modern procurement tools that allow flexibility, speed, and accountability.
In the digital age, bureaucracy is not neutral—it’s a liability.
Conclusion: Procurement as a Catalyst for Change
Sri Lanka is at a crossroads. The vision is bold, the talent exists, and the technologies are available. What’s holding us back is the system—one that hasn’t evolved in decades.
Dr. Hans has offered a path forward: a procurement model that’s agile, accountable, and focused on outcomes(Procurement Systems). We have the chance to make public service delivery smarter, faster, and fairer.
The question is: will we take it?
