Sri Lanka bus procurement expands to 600 deluxe vehicles, renewing concerns over restrictive tender rules, competition and public accountability.
The Sri Lanka bus procurement programme has expanded dramatically after Cabinet approved the purchase of 600 deluxe air-conditioned buses. However, the decision has also renewed demands for transparency over tender conditions previously criticised for restricting competition.
The Cabinet has authorised the Government to use Rs. 14.4 billion originally allocated for conventional Sri Lanka Transport Board buses. The funding will now support a significantly upgraded fleet under the 2025-2026 National Road Safety Plan.
Officials say the investment will improve passenger comfort, road safety and long-distance transport services across Sri Lanka.
However, an earlier procurement exercise behind the new programme continues to attract scrutiny from transport industry observers and procurement specialists.
Sri Lanka Bus Procurement Began With 200 Vehicles
The original project sought only 200 luxury diesel buses for expressway services. Questions later emerged over whether the tender conditions, either intentionally or unintentionally, favoured a limited group of major international manufacturers.
Among the most controversial conditions were strict financial benchmarks.
Bidders had to record annual turnover exceeding Rs. 6 billion during three of the previous five years. They also needed more than Rs. 3 billion in liquid working capital.
Eligible manufacturers were expected to produce at least 750 buses each year and export vehicles to five or more countries.
Critics argued that these requirements measured the size of a company rather than the quality of the buses it could supply.
They said the conditions could exclude smaller but experienced manufacturers capable of delivering internationally certified vehicles. Some of those suppliers also reportedly had established maintenance and after-sales networks.
The Government has rejected claims that the requirements were unnecessarily restrictive. Authorities maintain that the criteria aimed to ensure reliability, protect public money and secure long-term technical support.
Short Tender Period Raised Competition Concerns
The procurement timetable created further controversy.
Officials issued bidding documents between March 20 and April 9, 2026. Submissions closed on April 10 after only one pre-bid conference.
Several industry participants argued that the short preparation period made it difficult for potential suppliers to complete fully compliant bids.
They warned that the limited timetable could reduce meaningful competition and favour companies already prepared for the tender.
Additional technical rules required manufacturers to possess more than 15 years of production experience.
They also had to manufacture at least 1,000 units annually of the specific model offered under the tender.
Foreign manufacturers needed to appoint local representatives with at least five years of repair and maintenance experience. Those representatives also had to operate functioning workshop facilities.
Government officials say such conditions protect the long-term value of one of Sri Lanka’s largest public transport investments.
Cabinet Expands Tender to 600 Deluxe Buses
The latest Cabinet decision effectively replaces the disputed 200-bus tender with a centralised procurement process covering 600 deluxe vehicles.
This marks a major shift from a limited expressway acquisition to a wider national fleet modernisation strategy.
The expanded Sri Lanka bus procurement plan will use the Rs. 14.4 billion allocation to introduce more comfortable and technologically advanced buses across the country.
However, the Government has not yet publicly detailed how the original 200-bus tender evolved into the larger 600-bus programme.
That transition remains central to calls for greater accountability.
Procurement specialists say authorities should explain whether the previous eligibility requirements will remain in place, whether new bidders will receive adequate preparation time and how the Government will guarantee genuine competition.
Separate Metro Bus Project Moves Forward
Another part of the public transport modernisation programme is progressing separately.
The Ministry of Transport has already awarded Indra Traders (Pvt) Ltd a contract to supply 104 Metro buses manufactured by China’s FOTON International Corporation.
The buses are expected to arrive by mid-August. Officials plan to place them in passenger service before the end of September.
The new vehicles will introduce electronic fare collection. They will also operate from new depots that are currently under construction.
These developments reflect the Government’s broader attempt to modernise public transport and improve service standards.
Yet procurement experts say the programme’s success will depend on more than the appearance and performance of the buses delivered.
The Government must also provide a clear account of the bidding process, the evaluation criteria and the reasons behind the expansion.
Ultimately, public confidence will depend on whether authorities can show how a controversial 200-bus tender became a Rs. 14.4 billion purchase of 600 vehicles.
The quality of the fleet will matter. However, the credibility of the Sri Lanka bus procurement process will depend equally on open competition, transparent decision-making and responsible use of taxpayer funds.
