Audit reveals Sri Lanka paid Rs. 3 Billion extra for Indian buses

The 2023 Annual Audit Report by the Auditor General’s Department has revealed that Sri Lanka incurred an additional cost of Rs. 3,010 million due to the purchase of buses from India without a proper needs analysis or scientific evaluation.

Under the Indian credit line, USD 20 million was spent on these bus purchases. The procurement process initially aimed to acquire 500 buses (54-seaters and 35-seaters) following Cabinet approval in 2018.

However, a policy decision in 2020 revised the plan to import 600 buses instead, including 45-seaters and 35-seaters. This change resulted in the procurement of 100 more buses than originally planned.

Additionally, in 2023, another 500 buses were purchased with Cabinet approval. Each 32-seater bus was procured at a cost of USD 26,662.5, bringing the total expenditure for these 500 buses to USD 13,311,250.

The audit report highlights that the cost of a single bus in Sri Lankan currency was approximately Rs. 11.2 million, which is Rs. 6.2 million higher than the estimated cost per bus under the 2018 procurement plan.