Sri Lanka to import 800 buses from China on the eve of the presidential poll
Sri Lanka is set to buy 800 buses from China as part of their deal of purchasing 3,000 buses to strengthen the country’s transport board bus fleet to improve the efficiency of passenger transport service on the eve of presidential elections.
These 800 buses are to be imported from China before the end of this month utilizing the Rs.1 billion allocated from the past 2014 budget which was extended to the 2015 budget as well, Transport Ministry sources revealed.
These buses will meet the transport needs of officials who are to be deployed in election duty and other requirements relating elections, these sources disclosed.
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 Ministry sources, out of the 7,662 Sri Lanka Transport Board (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,” a senior official of the ministry revealed.
The Ministry says that it is difficult for the SLTB to maintain and repair these old buses
Meanwhile 2,000 more buses will be purchased from Lanka Ashok Leyland PLC, a joint venture between Ashok Leyland of India and the Sri Lankan government, on a supplier’s credit basis, officials said.
Transport Minister Kumara Welgama told the Business Times that the government will give the 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 from the 2015 budget in support of its capital investments to buy these Ashok Leyland buses.
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, Ministry sources revealed.