News Today: SLTB’s Rs.3.01 Billion Loss in 2024 Due to Procurement Decisions

The Sri Lanka Transport Board (SLTB) faced a massive loss of Rs.3.01 billion in 2024 due to controversial procurement changes initiated by verbal instructions from the former Transport Minister. The loss stems from the purchase of 500 Ashok Leyland Kynx buses, each costing Rs.11.02 million—an overpayment of Rs.6 million per bus compared to the estimated price.

The SLTB originally planned to replace buses older than 15 years using US$20 million from an Indian loan agreement, aiming to improve urban services. The Cabinet-approved procurement process, initiated in May 2018, outlined specifications for 400 buses with 50-54 seats and 100 with 32-35 seats.

However, on January 1, 2020, the Minister verbally instructed changes, leading to the purchase of 500 smaller buses with 32 seats each at a price significantly exceeding the market estimate of Rs.5 million per bus. The final procurement decision, made in January 2023, resulted in Rs.5,551 million spent, raising questions about the accountability of public funds.

This financial misstep highlights the importance of transparency and adhering to scientific bases in procurement decisions.