NPP Government’s 600-Bus Deal Revives Questions Over Controversial Tender Process
By: Staff Writer
July 23, Colombo (LNW): The Government’s decision to replace an earlier procurement for 200 luxury buses with a much larger Rs.14.4 billion programme to purchase 600 deluxe air-conditioned buses has placed Sri Lanka’s transport modernization drive under renewed scrutiny, with procurement experts questioning whether concerns surrounding the original tender have been adequately addressed.
Cabinet this week approved the reallocation of funds originally earmarked for standard 49-54 seat buses under the 2025-2026 National Road Safety Plan, authorizing the purchase of 600 premium air-conditioned buses for the Sri Lanka Transport Board (SLTB). Cabinet Spokesman and Minister Nalinda Jayatissa said the buses would be deployed on intercity and long-distance routes, with deliveries expected to begin by December 2026.
While officials describe the decision as a significant investment in safer and more comfortable public transport, the expanded programme has also revived debate over a procurement exercise conducted between October 2025 and April 2026 that sought to purchase only 200 luxury diesel buses for expressway services.
That tender attracted criticism from procurement specialists and former transport officials, who argued that several eligibility requirements appeared unusually restrictive. Bidders were required to demonstrate annual turnovers exceeding Rs.6 billion in at least three of the previous five years, maintain liquid working capital above Rs.3 billion, and represent manufacturers producing at least 750 buses annually while exporting to five or more countries.
Critics argued that such financial thresholds bore little relation to vehicle quality or operational performance and instead limited competition by excluding experienced local importers capable of supplying internationally recognized bus brands.
Further controversy emerged over the procurement timetable. Bid documents were available for just 20 days, from March 20 to April 9, with submissions closing the following day after only one pre-bid meeting. Industry observers claimed the compressed schedule, combined with narrowly defined technical specifications, significantly reduced opportunities for broader market participation.
Additional conditions required manufacturers to possess more than 15 years of production experience and manufacture at least 1,000 units annually of the proposed bus model. Overseas suppliers were also required to work through local agents with at least five years of repair and maintenance experience supported by fully operational workshop facilities.
Government officials have consistently defended the criteria, arguing that stringent standards were necessary to safeguard a major public investment by ensuring vehicle reliability, passenger safety and dependable after-sales support.
The latest Cabinet approval effectively absorbs the earlier 200-bus proposal into a centralized procurement for 600 buses, replacing what officials describe as a piecemeal acquisition strategy with a broader national modernization programme.
Separately, Sri Lanka’s transport modernization continues through another initiative. In May, the Ministry of Transport signed an agreement with Indra Traders (Pvt) Ltd to import 104 Metro buses manufactured by China’s FOTON International Corporation for Metro Transit Company, an SLTB subsidiary. Those buses, expected to enter service before late September, will introduce electronic fare collection while new depots are being developed at Kadawatha and Ratmalana.
Despite the expanded investment, procurement specialists say public confidence will ultimately depend on whether authorities fully explain how the disputed 200-bus tender evolved into the newly approved 600-bus programme and whether future procurement processes remain transparent and competitive.
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