The Auditor General’s Department’s 2023 annual audit report has revealed that Sri Lanka incurred an additional cost of Rs. 3,010 million due to the purchase of buses from India without a scientific basis and needs analysis.
The buses, funded through a $20 million Indian credit line, were procured under a Cabinet approval granted in 2018 for 500 buses, including 54-seater and 35-seater models. However, a new government policy decision in 2020 led to the procurement of 600 buses, comprising 45-seater and 35-seater models, resulting in the purchase of 100 more buses than initially planned.
The procurement process bypassed the previous procedures, and in 2023, 500 new buses were purchased following a new Cabinet approval. A 32-seater bus was bought for $26,662.50, leading to a total expenditure of $13,311,250 for the 500 buses.
The audit report also revealed that the cost of a single bus in Sri Lankan rupees is approximately Rs. 11.2 million, which represents an increase of Rs. 6.2 million compared to the originally planned purchase price for each bus under the 2018 procurement process.
