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Govt. won’t buy vehicles, only lease
View(s):The Government henceforth will lease vehicles required by ministries, departments and state institutions, instead of outright purchases. The move is aimed at cutting down costs involved in purchasing, paying for insurance, maintaining the fleet and having large garages with staff for repairs.
Finance Minister Ravi Karunanayake told the Sunday Times the measures would be implemented from 2017 onwards starting with the Police Department. He said that except for vehicles required by the President, the Prime Minister and specialised vehicles such as fire engines and ambulances, other vehicles would be obtained on a lease basis from private companies selected through a tender process.
He said the companies would be required to offer a replacement in the event of a breakdown of the vehicle. The decision was taken in view of the losses incurred in the ministries and departments maintaining their own vehicle fleets and particularly the depreciation of the value of the vehicle as the years pass by.
Meanwhile, the Police Department which will be the first to implement the scheme has been allocated Rs. 245 million to lease vehicles required by it for the next year. Accordingly jeeps, double cabs and cars will be obtained on lease.