Serious concerns have emerged over the procurement process for supplying dry and fresh food items to Sri Lanka’s Tri-Forces for 2026, following allegations that a tender was ultimately awarded to higher-priced bidders despite an earlier decision in favour of the lowest offer. The development has raised questions about transparency, adherence to procurement guidelines, and a potential financial loss to the State estimated at over Rs. 100 million.
The tender, called by the Ministry of Defence to procure food supplies for the Army, Navy and Air Force, was advertised in a state newspaper on 20 June 2025 under Contract Identification Number SCA/S & T/03 Dry Ration/Fresh Ration/2026 (26). Several private companies responded, submitting bids for a wide range of dry and fresh food items required by military camps across the country.
According to procurement documents, Beston Enterprises (Private) Limited emerged as the successful bidder for supplying dry rations and related food items after quoting the lowest prices for 36 out of 105 items. These included staples such as dried chillies, turmeric, pepper, salt, spices, dried fish, noodles and papadums, intended for Army camps in Panagoda, Kilinochchi, Ratmalana, Hingurakgoda and Anuradhapura.
This decision was formally communicated to the company in a letter dated 13 November 2025, signed by the Secretary to the Ministry of Defence, Air Vice Marshal (Retd.) Sampath Thuyacontha. The letter stated that the tender had been awarded in line with recommendations of the Bid Evaluation Committee and the Standing High-Level Procurement Committee, in accordance with prevailing procurement guidelines.
However, the process took a dramatic turn after twelve appeals were lodged with the Procurement Appeals Board by competing bidders. The appeals challenged the award, citing alleged inconsistencies in how documentation requirements were applied and claiming that shortcomings of the successful bidder were not assessed on the same basis as those of other companies.
The Procurement Appeals Board, referencing provisions of the 2024 Procurement Guidelines, noted that complaints from bidders must be properly acknowledged and addressed during evaluations. Despite earlier reviews by the Bid Evaluation Committee and the High-Level Standing Procurement Committee, it is alleged that the Presidential Appeals Board subsequently removed Beston Enterprises from the process and allowed former contractors to secure the tender at higher prices.
As a result, contracts were reportedly awarded at significantly increased rates for key items such as spices, dried fish and other essentials. Critics argue that this reversal has led to a projected loss of around Rs. 100 million to the government, compared to the savings that would have been achieved under the original award.
Further allegations suggest that entrenched commercial relationships and profit motives may have influenced the outcome, prompting questions about whether certain suppliers continue to dominate Tri-Forces tenders due to longstanding connections. Beston Enterprises, despite being described in appeals as a “new” supplier, has reportedly operated since 1985 and already supplies dry rations to public institutions, with some existing military suppliers sourcing goods from it.
The total estimated allocation for Tri-Forces food supplies for 2026 stands at Rs. 41.8 billion Rs. 29 billion for the Army, Rs. 10.3 billion for the Navy and Rs. 2.5 billion for the Air Forceheightening the significance of any procurement inefficiencies.
Efforts by this newspaper to obtain clarifications from senior officials, including the Chairperson of the Standing High-Level Procurement Committee, officials of the Ministry of Defence and legal advisers, were unsuccessful. However, Bid Evaluation Committee Chairman L. D. N. Kumarasiri maintained that the tender was initially awarded to Beston Enterprises in full compliance with procurement regulations and denied any irregularities.
With public funds at stake, the controversy has underscored the need for greater scrutiny and accountability in large-scale government procurement processes.
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