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Audit report reveals multi-million loss from bus procurement

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A major audit report has revealed a significant financial discrepancy involving the purchase of buses from India.

Following the release of the 2023 annual audit report by the Auditor General’s Department, it has been revealed that the government has incurred an additional cost of Rs. 3,010 million due to the acquisition of buses without proper scientific justification 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, in 2020, a new policy decision led to a shift in procurement plans, with the number of buses increased to 600 – including models with 45 and 35 seats.

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 USD 26,662.50. 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.s

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

(Source : Aruna)

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Committee to probe irregularities at Sri Lankan Airlines 

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President Anura Kumara Disanayake has instructed relevant authorities to establish a committee under the Presidential Secretariat to investigate allegations of corruption and mismanagement at SriLankan Airlines. 

The directive was issued during a four-hour meeting held today (May 20) at the Presidential Secretariat, attended by the airline’s Board of Directors and representatives from all affiliated trade unions.  

The discussions aimed to secure the collective commitment of stakeholders to uphold the government’s decision to retain state ownership of the airline, eliminate losses and steer it toward recovery. President Disanayake stressed that rebuilding SriLankan Airlines would be impossible without unified efforts, adding that the institution must develop its internal capacity to rebuild itself.  

Asserting the government’s role as the political authority, the President reiterated its commitment to making “all necessary sacrifices” to rescue Sri Lanka from its economic crisis. He emphasised that reviving the national carrier is the shared responsibility of its entire workforce.  

Highlighting the allocation of Rs. 20 billion from the budget for SriLankan Airlines, the President underscored the need for stringent fiscal accountability, noting that these funds, drawn from public taxes, must be utilised efficiently. He also welcomed the “positive trend” of April’s operational revenue surpassing targets.  

New proposals have been presented by the Board of Directors to transform SriLankan Airlines, which operates under government ownership, into a profitable entity. In line with these proposals, the trade union representatives who participated in the discussions stated before the President that they would extend their full support to achieving these goals. 

Key Attendees at the meeting included: Mr. Sarath Ganegoda, Chairman of SriLankan Airlines and members of the Board of Directors, representatives from trade unions, including: Flight Attendants’ Union (FAU), the Airline Pilots’ Guild of Sri Lanka (ALPGSL), the Association of Licensed Aircraft Engineers (ALAE), the SriLankan Airlines Aircraft Technicians’ Association (SLAATA), and the Sri Lanka Nidhahas Sewaka Sangamaya (SLNSS), the Inter-Company Employees’ Union (ICEU) and the SriLankan Airlines Executive Association (EASLA). 

(President’s Media Division)

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Several new appointments made

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Several new appointments have been made by Anura Kumara Disanayake.

Accordingly, the appointments made are as follows : 

Chief Innovation Officer of National Innovation Agency – Dr. Muditha Darshana Senarath Yapa Appointed 

New Secretary to the Ministry of Fisheries – Dr. Kolitha Kamal Jinadasa

Secretary to the Ministry of Rural Development, Social Security and Community Empowerment – Sampath Manthrinayake

Chief Secretary of the Northern Province – Ms. Thanuja Murugesan

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Dy. Prime Minister of New Zealand to visit SL

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Deputy Prime Minister and Minister of Foreign Affairs of New Zealand Winston Peters will be undertaking a visit to Sri Lanka from May 24 – 28, 2025.

During this visit, the Deputy Prime Minister is expected to pay courtesy calls on President Anura Kumara Disanayaka and Prime Minister Dr. Harini Amarasuriya, and hold bilateral discussions with the Minister of Foreign Affairs, Foreign Employment and Tourism H.M. Vijitha Herath, aimed at enhancing cooperation in the areas of trade and investment, agriculture, education, connectivity, tourism and sports. Deputy Prime Minister Peters is also expected to have several private sector and media engagements during the visit.

The Deputy Prime Minister will be accompanied by three senior officials from the Ministry of Foreign Affairs and Trade of New Zealand.

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