SLTB overpaid Rs. 3.01 billion for bus procurement in 2024
Sri Lanka Transport Board (SLTB) has overpaid Rs.3.01 billion in 2024 to purchase 500 buses, each costing Rs.6 million more than the estimated price, according to a report by the National Audit Office.
The loss occurred due to changes made to the decision of purchasing 500 new buses with the remaining US$ 20 million from an Indian loan agreement, based on the Minister’s verbal instructions without any scientific basis.
The SLTB aimed to replace buses older than 15 years and maintain urban services without disruptions.
The procurement process for 400 new buses with 50-54 seats (2×2) and 100 new buses with 32-35 seats (2×2) began on May 23, 2018, based on a Cabinet decision.
All necessary steps for inviting tenders were taken until the Transport Minister changed the decision on January 1, 2020, to purchase 500 new small buses with 32-36 seats and 100 new buses with 42-45 seats.
However, on January 3, 2023, a decision was made to procure 500 new Ashok Leyland Kynx buses with 32 seats each at US$ 26,662.50 per bus (USD 13,311,250 total) from Ashok Leyland Limited India.
The total amount paid for these buses was Rs.5,551 million, with each bus costing Rs.11.02 million. The estimated price for a 32-35 seat bus was Rs.5 million.
