Lanka to buy 2,000 Leyland buses to strengthen passenger bus fleet
Sri Lanka is set to buy 2,000 buses from Lanka Ashok Leyland PLC., a joint venture between Ashok Leyland of India and the Sri Lankan government, on supplier’s credit basis, officials said.
Transport Minister Kumara Welgama told the Business Times that the government will give the Sri Lanka Transport Board (SLTB) Rs. 5 billion spread over five years to settle the cost while the SLTB will have to bear the rest of the cost.
The Treasury has allocated Rs.1 billion to the SLTB this year in support of its capital investments to buy these Ashok Leyland buses a senior official of the Finance Ministry said. The financial allocation was made despite the decision taken by the Treasury to grant funds from the annual budget in the future, only for the losses of income to the SLTB due to operations on uneconomical routes and for issuance of school season tickets.
It has also decided to settle the statutory dues such as EPF and ETF contributions from the funds generated through the sale of non-economical and unserviceable buses, he revealed.
The Treasury will provide Rs. 500 million to bridge the SLTB revenue shortfall this year, he added.
Minister Welgama said the government has shelved the earlier plan to import 3,000 buses from China for the SLTB as the Leyland bus is more suitable for Sri Lankan roads.
However vehicle importers alleged that the reason for calling off the Chinese deal was because the Chinese company had refused to extend credit facilities to the Government and offer ‘commissions’ to ‘certain parties’.
Private bus operators have a virtual monopoly over passenger bus operations in the country as there are more private buses than state- owned passenger buses. According to the Minister out of the 7,662 SLTB buses, 2,916 are not roadworthy. The majority of the buses are over 15 years old and used to the maximum with the SLTB spending Rs. 510 million rupees each month on all its operations.
“The SLTB fleet has only 2,500 buses that are seven years old. All the others have been in operation for the past 15, 20 or 30 years,” he revealed.
The Minister said that it is difficult for the SLTB to maintain and repair these old buses.