Sri Lanka Overpaid Rs. 3,010 Million for Indian Bus Purchases Due to Lack of Scientific Basis and Needs Analysis: Audit Report Reveals

COLOMBO (News 1st); The Auditor General's Department's 2023 annual audit report has revealed that Sri Lanka had to pay an additional Rs. 3,010 million due to the purchase of buses from India without a scientific basis and needs analysis.

These buses were purchased using $20 million from an Indian credit line.

The procurement process for 500 buses, comprising 54-seater and 35-seater models, began following a Cabinet approval granted in 2018.

However, a new policy decision by the government in 2020 led to the commencement of procurement for 600 buses instead, including 45-seater and 35-seater models.

This resulted in the procurement of 100 more buses than initially planned.

Completely bypassing all previous procurement processes, 500 new buses were purchased in 2023 with new cabinet approval.

A 32-seater bus was purchased for $26,662 and 50 cents.

Consequently, the total expenditure for 500 buses amounted to $13,311,250.

According to the audit report, the value of a single bus in Sri Lankan rupees is approximately 11.2 million.

This represents an increase of Rs. 6.2 million compared to the cost of a bus planned for purchase under the 2018 procurement process.