The National Audit Office’s report on the purchase of 500 buses by the Sri Lanka Transport Board (SLTB) reveals significant cost overruns and raises concerns over the procurement process. The buses, each with a 32-seater capacity, were purchased at a price of Rs. 11.07 million per unit, far above the estimated cost of Rs. 5 million. This resulted in a total excess expenditure of Rs. 3,010 million for the entire fleet.
The procurement was part of an agreement with Ashok Leyland, an Indian vehicle manufacturer, under a $20 million loan provided to the Sri Lankan government in March 2023. The buses were delivered as per the terms of the agreement, with each vehicle priced at USD 28,500, which converted to Rs. 11.07 million based on the prevailing exchange rate.
The report highlights concerns about the financial management and decision-making in the procurement process, indicating that the significant cost increase was not justified. It also emphasized the importance of ensuring that the buses purchased provide a high level of passenger comfort and that technical issues are addressed during the warranty period.
The audit recommended that the SLTB and other government agencies implement stricter oversight and accountability measures when procuring vehicles or other equipment to avoid such discrepancies in the future.
