• New permit transfer framework seeks to increase accountability

The National Transport Commission (NTC) has officially launched a legal framework for the transfer of private bus route permits, effectively ending a 30-year period where such transactions were handled through informal and often illegal external agreements.

The initiative, which is set to commence operation tomorrow (9), follows the enactment of the National Transport Commission (Amendment) Act No.8 of 2025 and the subsequent publication of Extraordinary Gazette No.2471/68.

NTC Director General Commander (Retd) Dr. Nilan Miranda explained that the original legislation established in 1991 provided no legal mechanism for a permit holder to transfer their rights to another individual.

“The previous act contained no provisions for bus owners to legally transfer their permits. As a result, many resorted to unauthorised methods, entering into private agreements outside of the NTC’s jurisdiction. These transactions were beyond our oversight and led to numerous illegal practices,” Dr. Miranda said.

The new regulations include a vetting process to ensure the financial and legal standing of both parties involved in a transfer. Prospective transferees are now required to demonstrate financial competence by maintaining a minimum balance of Rs. 2 million over a six-month period. Additionally, the NTC has introduced an online system where all necessary documentation must be submitted for review.

Addressing concerns regarding road safety and the accountability of bus owners during accidents, Dr. Miranda clarified that the commission was intensifying its investigative procedures. He noted that while drivers were often the primary focus of legal action following a mishap, the NTC held owners strictly accountable under the conditions of their permits.

Dr. Miranda highlighted a recent enforcement action as a precedent for this policy: “As an example, following the incident where a Pulmoddai bus was driven into a flooded area last year during the Cyclone Ditwah, we cancelled the NTC registrations of both the driver and the conductor. We also imposed a one-month suspension on the bus owner as a penalty. When these cases are taken to court, we ensure that all three parties, which include the driver, the conductor, and the owner, are all held accountable and produced before the legal system.”

The NTC website has been updated with the relevant forms and instructions to facilitate the new legal process.