<ul><li>1,775 diesel double cabs to be procured</li><li>MPs to get vehicles on return basis</li><li>Call for investigation into double-cab deal</li></ul> President Anura Kumara Dissanayake’s Budget proposal of Rs. 12,500 million for vehicles and machinery for Government institutions has sparked a parliamentary firestorm, with allegations that the rushed tender to procure 1,775 automatic diesel double cabs circumvents procurement norms and enriches a select few companies.The controversy erupted yesterday (8) during the opening of the Budget debate when Samagi Jana Balawegaya (SJB) Member of Parliament (MP) and Committee on Public Finance (COPF) Chairman Dr. Harsha de Silva accused the President of attempting to justify a recent “controversial” Government tender.&nbsp;De Silva said that the Government was dragging MPs, both ruling and Opposition, into what he called the “double-cab scam,” raising concerns over violations of national procurement guidelines.President Dissanayake, speaking on Friday (7) in Parliament, argued that the Government’s current fleet was inadequate and largely obsolete, leading to high repair and maintenance costs that hampered development activities.&nbsp;He said the proposed purchase of vehicles and machinery was essential for Government institutions, and that vehicles for MPs would be provided on a return basis after their term ended.However, Dr. de Silva raised red flags over the process itself.&nbsp;The Ministry of Finance, Planning, and Economic Development had invited sealed bids for the procurement of 1,775 brand-new four-wheel-drive, automatic transmission diesel double cabs, in what is set to be one of the largest vehicle purchases by a Government ministry in recent years.&nbsp;The procurement, issued under Bid Number MOF/NCB/23/76/2025, had been conducted through the National Competitive Bidding (NCB) procedure, with bids ending on 4 November.The 42-day window required for NCB had been compressed into 12 days, and only one or two companies had met the tender’s stringent eligibility criteria.&nbsp;As per the bid document published on 23 October, the tender came with stringent eligibility requirements that could significantly limit participation.Bidders had to demonstrate at least 10 years of experience supplying and maintaining the specified vehicles, have delivered at least 1,000 similar vehicles in the past decade, maintain 10 service and repair centres across the country (including five outside the Western Province), and show an average annual turnover of at least Rs. 10 billion for 2017-2019.&nbsp;They had to also provide tax compliance verification from the Inland Revenue Department, registration under the Public Contracts Act, and proof of access to a Letter of Credit facility, along with a non-collusion affidavit to prevent bid-rigging or cartel practices.&nbsp;Bids had to also include a security deposit of Rs. 50 million, either in cash or via bank guarantee, valid until 26 May 2026.&nbsp;Interested parties were able to purchase the bidding documents for Rs. 500,000 in cash and inspect them at the ministry’s Accounts Division from 23 October to 3 November.&nbsp;Given the scale and value of the purchase – potentially exceeding Rs. 50 billion – the procurement had attracted attention from industry observers, particularly regarding the strict eligibility criteria and high financial thresholds, which could restrict competition and raise questions about transparency and accountability in the awarding process.Meanwhile, Opposition MP Ravi Karunanayake has alleged that the tender is essentially a repackaged version of a previously shelved plan to import 2,000 double cabs for MPs. He warned that the tender requirements, including a minimum 2,500 cc engine and nationwide service operations, made it likely that only one company could qualify, and questioned why the Government did not consider electric vehicles to save on fuel costs.When The Sunday Morning reached out to Minister of Public Security and Parliamentary Affairs Ananda Wijepala, he said his ministry had no involvement in the procurement process and confirmed that it was being handled by the Ministry of Finance.Treasury Deputy Secretary Ajith Abeysekera stated that the decision followed lengthy discussions with officials and the President, but stressed that the matter was being managed by the Department of Fiscal Policy.&nbsp;Efforts to contact Director General of Fiscal Policy Dr. M.K.C. Senanayake were unsuccessful.Under President Dissanayake, the Government has implemented a long-term policy to end the issuance of vehicle permits and official vehicles for MPs.&nbsp;Initially announced in the 2025 Budget, the directive emphasised that MPs would not receive new vehicles or permits for that year as part of broader cost-saving and governance reforms.&nbsp;Instead of acquiring new vehicles, the Government planned to repurpose existing official vehicles, with 107 vehicles already returned and allocated for essential services.&nbsp;

Budget 2026: Double cab tender under P’ment fire

The Government’s plan to recruit 75,000 new employees to the public service, as announced by President Anura Kumara Dissanayake, will be implemented in phases and completed by next year, according to Public Administration, Provincial Councils, and Local Government Minister Chandana Abayarathna.Abayarathna emphasised that recruitment would be gradual and structured, ensuring that it did not place an additional financial burden on the Government.“We will be gradually recruiting and necessary allocations for salaries and other benefits will be looked at after considering the Government’s revenue and expenditure,” he said.The move, outlined in the 2026 Budget, follows years of stagnation in public sector recruitment, which officials say has led to the paralysis of essential public services.&nbsp;A committee headed by the Prime Minister was appointed to review the recruitment process and determine the required cadre levels across the public sector.Under the new plan, recruitment will prioritise essential service positions such as technical officers, law enforcement officers, and revenue officers, with appointments to be made through a formal and transparent system.The Government has also pledged that all future recruitments, promotions, and other administrative activities will be conducted strictly according to prescribed examinations and service regulations, eliminating political influence and ensuring equal opportunity for qualified candidates.In addition to the phased recruitment, the Government plans to regularise the employment status of approximately 9,800 public sector workers who are currently serving on temporary or contract appointments and receiving only minimum wages.&nbsp;Permanent appointments will be granted to those who have served for more than six months and who meet the required qualifications under Public Administration Circulars 25/2014 and 29/2019.Minister Abayarathna said the phased approach would allow the Government to manage the recruitment efficiently while maintaining fiscal stability and improving public service delivery.“This is not an ad hoc recruitment drive,” he noted. “It is a carefully planned, phased process designed to strengthen the public service without straining public finances.”&nbsp;

Public sector: Govt. to recruit 75,000 in phases

The Police is awaiting a report from the Criminal Investigation Department (CID) ahead of expediting the process of extraditing Singapore-based former Governor of the Central Bank of Sri Lanka (CBSL) Arjuna Mahendran, Police Media Spokesman ASP F.U. Wootler told The Sunday Morning.This is pursuant to a notice issued by former Colombo Chief Magistrate Thanuja Lakmali on 23 August for Mahendran, who has been named as a suspect in the 2015 CBSL bond scam, to appear before the said court on 26 September.The court had issued the notice to Mahendran having considered a request made by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).Wootler said that, as was the norm in such matters, he had already sought a report on the former Governor of the CBSL from the CID and added that once it was received by him, he would be able to reveal further information in that regard.Asked how long the process would take, the Police Media Spokesman said he could not give a timeline but guaranteed that once it was submitted, he would keep the media apprised.Wootler also asserted that the Police Department was determined to expedite the process of sending the notice to Mahendran.&nbsp;This is amidst allegations that his department had failed to properly execute the notice to the former Governor despite a similar notice being issued by the court last year.He dismissed claims that the Police Department had been dormant in effectively executing the notice issued to Mahendran by the Colombo Chief Magistrate’s Court and advised The Sunday Morning to bide time until the process took effect.The CIABOC has filed the case against Mahendran under the Anti-Corruption Act. It charged that his actions had caused financial losses to the Government by selling bonds valued at over Rs. 10 billion to Perpetual Treasuries Ltd. owned by Mahendran’s son-in-law Arjun Aloysius during a bond auction conducted by the CBSL on 27 February 2015.Efforts made by The Sunday Morning to obtain the views of Minister of Public Security Ananda Wijepala proved unsuccessful.&nbsp;

Bond scam: Police awaits CID report to push extradition

Nearly 900,000 families in Sri Lanka lack permanent houses, the Government has acknowledged.This, in the wake of reports that there are over 100,000 temporary and unsafe houses in Sri Lanka.Commenting on the issue to The Sunday Morning, Minister of Housing and Construction Dr. Susil Ranasinghe said that about 900,000 families in Sri Lanka did not have permanent houses and that they could be divided into several groups.&nbsp;“For example, there are families where both husband and wife are working but have no house of their own and live with others in the parental house. Then there are low-income families living in temporary houses. These are the ones we mainly focus on. They are the people who need Government subsidies,” he said.Meanwhile, the Ministry of Urban Development, Construction, and Housing stated that the Government had allocated Rs. 4 billion to help low-income families living in such conditions build permanent homes, with all work expected to be completed by the end of this year.According to the 2024 Census of Population and Housing Preliminary Report of the Department of Census and Statistics (DCS), over 100,000 occupied housing units in the country have walls made of mud and stones, and are roofed with palmyra leaves, cadjan, or straw.Dr. Ranasinghe noted that in 2025, the Government had provided Rs. 1 million each to 3,500 low-income families to help them build houses.“If a family was living in a house made of mud, we gave them Rs. 1 million to build a proper home. This is not a loan. They don’t have to repay this Rs. 1 million. We give them money and they build their houses. More than 2,000 of those houses have already been completed and opened,” he said.In addition, he said that another Rs. 500 million had been allocated to assist another 500 families, including those with members with disabilities or individuals suffering from kidney disease. “We expect to complete all 4,000 houses by the end of this year,” he added.The issue of inadequate housing continues to be a major social challenge in Sri Lanka, particularly among low-income and rural communities. Many families continue to live in makeshift shelters or overcrowded conditions without access to basic facilities such as proper sanitation, clean water, or stable roofing.&nbsp;

Almost 900,000 families sans permanent houses

The Ministry of Education, Higher Education, and Vocational Education states that there will be certain difficulties in implementing the upcoming education reforms, such as teacher shortages, which will be addressed depending on the situation.Speaking to The Sunday Morning, Ministry Secretary Nalaka Kaluwewe said that teacher shortages and other challenges could occur in some schools but that they would be managed as the reforms were rolled out.“The problem of teacher shortage can exist in any school. It is already an issue, but education continues. We have to manage these problems in some way. We cannot stop implementing the reforms just because there are challenges.”He noted that the reforms would be rolled out under the new education framework and that the ministry would be receiving regular updates from zonal and provincial levels.&nbsp;“We will be getting feedback about the difficulties faced in various areas, and we believe we can move forward by addressing them according to each situation,” he added.Kaluwewe opined that implementing the education reforms and resolving issues that arose in the process were two separate matters.As part of the proposed reforms, the Education, Higher Education, and Vocational Education Ministry recently announced that the number of subjects offered at the General Certificate of Education (GCE) Ordinary Level examination would be reduced to seven. The number of teaching periods per day will also be reduced to seven, with each period lasting 50 minutes.Under the reforms, which are expected to take effect in 2026, school hours will be extended from 7.30 a.m. to 2 p.m., 30 minutes longer than the current closing time of 1.30 p.m.&nbsp;The ministry stated that the revised schedule was intended to create a more effective learning environment and make up for instructional time lost during disruptions such as the Covid-19 pandemic.&nbsp;

Edu reforms to proceed despite challenges

The Government has decided to commence the construction of the Rambukkana-Galagedara section of the Central Expressway Phase III using domestic funds.Presenting the 2026 Budget proposal to Parliament on Friday (7), President Anura Kumara Dissanayake emphasised that the Government was focused on completing key expressway projects to strengthen road connectivity and support economic growth.According to the Budget proposal, the construction of the Pothuhera-Rambukkana section of the Central Expressway Phase III, extending from Pothuhera to Galagedara, is scheduled for completion in the first quarter of 2027, with an allocation of Rs. 10,500 million.Furthermore, it has been proposed to commence construction work on the Rambukkana-Galagedara section of the same phase using local funding, taking into account the country’s fiscal space.&nbsp;A total of Rs. 20,000 million has been allocated for this purpose, comprising remaining provisions from the Road Development Authority’s debt repayments and an additional budgetary allocation.President Dissanayake noted that the economic crisis experienced by the country had led to the suspension of numerous road development projects, causing various complications, and that measures had now been taken to address these issues and resume the implementation of such projects.&nbsp;For overall road development in 2026, the Government has allocated Rs. 342 billion, which includes several major initiatives.Among them, financial facilities have been approved for the construction of the Kadawatha-Mirigama section of the Central Expressway, with Rs. 66,150 million allocated for 2026. Feasibility studies for widening the Katugastota-Galagedara road section are also set to begin next year.&nbsp;In parallel with the development of the Kandy Multimodal Transport Centre, provisions have been made to widen and upgrade several access roads leading into Kandy City, which is expected to ease traffic congestion significantly.Land acquisition for the proposed Kurunegala-Dambulla Expressway is currently in progress, with Rs. 1,000 million allocated to complete this process. Meanwhile, the construction of the 25-kilometre Kahathuduwa-Ingiriya section of the Ruwanpura Expressway, which was halted during the economic crisis, is to be reassessed.&nbsp;The Government plans to improve the existing access road based on an updated feasibility study, with Rs. 1,500 million allocated for land acquisition.Additionally, to enhance connectivity to the Colombo Port and Port City, Rs. 330 million has been allocated to conduct a feasibility study on constructing a link between the Port Access Elevated Highway and the Marine Drive Extension (Phase II).&nbsp;

Central Expressway : Phase III to commence with domestic funding

All 77 tsunami early warning towers across Sri Lanka are expected to be reactivated within the next one-and-a-half months, according to Disaster Management Centre (DMC) Director (Awareness) Pradeep Kodippili.Speaking to The Sunday Morning, Kodippili explained that the towers had remained inactive for nearly three years due to issues with the satellite responsible for transmitting signals to the warning network.&nbsp;However, he emphasised that steps had already been taken to resolve the technical problems and restore the system to full operation.Kodippili added that there were no plans to dismantle the towers, as they remained a vital component of the country’s early warning system.Each tsunami early warning tower cost around Rs. 4 million to construct and is designed to cover a radius of approximately 3 sq km. Kodippili noted that, in addition to the towers, there were 15 other early warning mechanisms currently in place, ensuring that alerts could still reach communities even if one system failed.“The towers are only one part of the broader early warning mechanism. Even if they are inactive, other systems are ready to ensure that warnings reach the village level,” he said.The DMC further revealed that discussions were ongoing with several international organisations, through the Ministry of Foreign Affairs, to help reactivate the entire tsunami early warning network.According to Kodippili, the satellite used to transmit the tower signals is owned by a US-based company, for which the Government pays Rs. 7 million annually.He added that, despite the technical challenges, the Police and armed forces continued to play a key role in disseminating tsunami warnings to ensure communities along the coast remained protected.&nbsp;

Disaster preparedness: 77 tsunami early warning towers to be reactivated

The Government’s proposal to remove the Special Commodity Levy (SCL) imposed on imported coconut oil and palm oil will damage the domestic coconut oil industry, local producers claim.The Government has noted that the policy, scheduled to be implemented from April 2026, where the SCL on imported oil will be replaced with the general tax structure, including the Value-Added Tax (VAT) and the Social Security Contribution Levy (SSCL), intends to create a level playing field for local producers.However, All Ceylon Traditional Coconut Oil Manufacturers’ Association Chief Convenor Buddhika De Silva, whose association represents small- and medium-scale manufacturers, charged that the proposal was “made to protect five big-time importers of palm oil”.“This will simply safeguard these importers of palm oil; only they have been issued a licence to import palm oil – general importers are not allowed,” he said, stating that the SCL of Rs. 275 would be reduced to about Rs. 160-170 with the new tax system.In contrast, he noted that the tax on coconut oil imports would rise by about Rs. 15-20. Accordingly, he contends that while the price of coconut oil imports will increase slightly, palm oil imports will face reduced prices in the market.De Silva further alleged that this move would “enhance the importation of palm oil,” adding: “These five companies that have obtained the licence will benefit. Domestic coconut oil manufacturers will not be able to compete with palm oil because its cost is very low. This move will destroy Sri Lanka’s coconut oil manufacturers.”“The international value for palm oil is low because demand is reducing, especially since India has restricted imports, noting that it was not healthy. Sri Lanka, on the other hand, is promoting the importation of palm oil.”Further, he warned that cheaper palm oil would lead to adulteration, with traders mixing palm oil with coconut oil and selling it as coconut oil.However, Coconut Development Authority Chairman Shantha Ranathunga, speaking to The Sunday Morning, noted that this policy shift was expected to protect and encourage domestic coconut oil producers, alongside ensuring that local produce became more competitive against exports.Currently, locally produced coconut oil and palm oil are subjected to VAT and the SSCL, while imported coconut oil and palm oil are subjected to the SCL at Rs. 150 per kilogramme and Rs. 275 per kilogramme, respectively. Meanwhile, locally produced oils are charged 18% VAT and 2.5% SSCL, rendering them more expensive and less competitive.“When a Special Commodity Levy is imposed, VAT or the SSCL cannot be imposed on top of that if the product is sold without any value-addition. For instance, imported refined coconut oil is currently charged an SCL of Rs. 150, meaning VAT and the SSCL can’t be imposed on this.“However, both VAT and the SSCL are imposed on domestic coconut oil producers. As a result, the price of locally produced coconut oil is higher. This proposal intends to eliminate this imbalance.”He noted that for palm oil, which is only sold industrially, the removal of the SCL meant that it would now become subject to Customs Import Duty, the SSCL, VAT, and the Ports and Airports Development Levy.Ranathunga shared that discussions had been held with domestic coconut oil industry stakeholders before this policy shift, noting that in the long term, this was expected to stabilise the domestic coconut oil market and enhance the competitiveness of locally produced oil.&nbsp;

SCL taxation change: Local coconut oil producers concerned over removal

Ceylon Chamber of Commerce (CCC) Chairman Krishan Balendra praised the 2026 Budget for demonstrating “unprecedented economic discipline,” saying it has boosted private sector confidence for new investments. Speaking at a post-budget discussion held in Colombo on Thursday (7), Finance Secretary Harshana Suriyapperuma highlighted the government’s focus on digitalization and anti-corruption measures to support growth, while Labour Minister and Deputy Finance Minister Anil Jayantha emphasized inclusivity and clean governance in budget preparation.

Budget 2026: Double cab tender under P’ment fire

Public sector: Govt. to recruit 75,000 in phases

Public sector: Govt. to recrui ...

Bond scam: Police awaits CID report to push extradition

Bond scam: Police awaits CID r ...

Almost 900,000 families sans permanent houses

Almost 900,000 families sans p ...

Edu reforms to proceed despite challenges

Edu reforms to proceed despite ...

Central Expressway : Phase III to commence with domestic funding

Central Expressway : Phase III ...

Disaster preparedness: 77 tsunami early warning towers to be reactivat ...

Disaster preparedness: 77 tsun ...

SCL taxation change: Local coconut oil producers concerned over remova ...

SCL taxation change: Local coc ...

2026 budget shows strong economic discipline – CCC Chairman

2026 budget shows strong econo ...

Public sector: Govt. to recruit 75,000 in phases

Public sector: Govt. to recrui ...

Bond scam: Police awaits CID report to push extradition

Bond scam: Police awaits CID r ...

Almost 900,000 families sans permanent houses

Almost 900,000 families sans p ...

Edu reforms to proceed despite challenges

Edu reforms to proceed despite ...

Central Expressway : Phase III to commence with domestic funding

Central Expressway : Phase III ...

Disaster preparedness: 77 tsunami early warning towers to be reactivat ...

Disaster preparedness: 77 tsun ...

SCL taxation change: Local coconut oil producers concerned over remova ...

SCL taxation change: Local coc ...

2026 budget shows strong economic discipline – CCC Chairman

2026 budget shows strong econo ...

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Public sector: Govt. to recruit 75,000 in phases

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Almost 900,000 families sans permanent houses

Almost 900,000 families sans p ...

Edu reforms to proceed despite challenges

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Central Expressway : Phase III to commence with domestic funding

Central Expressway : Phase III ...

Disaster preparedness: 77 tsunami early warning towers to be reactivat ...

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