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Results for “procurement”

Government gazettes Public-Private Partnerships Bill to establish National Agency

The Government has gazetted the proposed Public-Private Partnerships Bill, which provides for establishing a National Agency to promote and facilitate public-private partnership projects in Sri Lanka. President Anura Kumara Dissanayake, acting as Minister of Finance, Planning and Economic Development, submitted the Bill following Cabinet approval on 19 October. The proposed law aims to create a legal framework for cooperation between the State and private-sector investors, while addressing issues concerning transparency, procurement and institutional coordination. It is also designed to align public-private partnership projects with the public investment management framework under the Public Financial Management Act.

Cabinet approves Rs. 9.1 billion in contracts for highway upgrades and cyclone repairs

The Cabinet of Ministers has approved awarding four road development and rehabilitation contracts worth Rs. 9.1 billion, excluding value-added tax. Cabinet Spokesman Dr. Nalinda Jayatissa said on 10 November 2026 that contracts were awarded through national competitive procurement to the lowest responsive bidders, based on proposals by Transport Minister Bimal Rathnayake. Three contracts worth Rs. 8.33 billion cover highway widening and improvements. RR Construction secured two contracts valued at Rs. 1,485.79 million for the A004 road and Rs. 3,739.84 million for the A018 road. Maga Engineering was awarded a Rs. 3,106.21 million contract for the B365 road. ELS Construction received a Rs. 763.98 million contract to rehabilitate road sections in Nawalapitiya damaged by Cyclone Ditwah.

Trade Ministry awaits court case outcome to decide further action against LAUGFS

The Trade Ministry will decide on further action against LAUGFS Gas PLC based on the outcome of a court case filed against the company, Deputy Trade Minister R. M. Jayawardena said. The ministry had directed LAUGFS to supply adequate gas or buy back cylinders for Rs 1,000, but consumers could not return them. Jayawardena said promised gas shipments also failed to arrive on three specified dates. He earlier accused the company of delaying orders to push its domestic market share beyond the permitted 20 percent limit. In response, LAUGFS Chairperson W.K.H. Wegapitiya said international procurement, shipping, and Middle East supply chain disruptions caused the shortages, denying that the company failed or hesitated to place orders.

Public sector audit issues recur despite regulatory safeguards, commentary says

Sri Lanka’s public sector operates under an extensive framework of financial regulations, procurement guidelines, treasury circulars, internal controls, and audit requirements. Despite these safeguards, similar audit observations continue to recur in the sector, according to a commentary by Indrajith Karunarathna.

Cabinet approves Rs. 1.73 billion contract for Kelaniya University ten-storey building

Sri Lanka’s Cabinet has approved awarding a Rs. 1.73 billion contract, excluding Value Added Tax, to M/s Sathuta Builders (Pvt) Ltd to construct a ten-storey building for the University of Kelaniya. The project will house the university’s Faculty of Commerce and Management Studies, reviving construction that had been halted due to the economic crisis. Procurement began after the Cabinet approved resuming the project through national competitive bidding on 3 February 2025, which drew ten bids. The Prime Minister, serving as Minister of Education, Higher Education, and Vocational Education, submitted the proposal after evaluation committees recommended the company as the lowest substantially responsive bidder.

Government adjusts procurement cycles to utilize planned Rs. 2,000 billion capital expenditure

The government has adjusted procurement cycles for development projects to fully utilize the planned Rs. 2,000 billion capital expenditure next year, Cabinet Spokesman Nalinda Jayatissa said. Ministries have been instructed to prepare plans, estimates, and procurement activities before the budget is passed on December 14, allowing contracts to be awarded starting in early January. Finance Ministry officials said the government spent less than 25 percent of the allocated Rs. 1,340 billion in the first nine months of the year. Jayatissa said technical delays in tenders and procurement make full spending unlikely this year, following a long-standing pattern of underutilizing capital budgets.

NTNSP signs contract with Shanghai Electric for 87.7 km transmission line project

The National Transmission Network Service Provider Ltd. finalised an engineering, procurement and construction contract with China’s Shanghai Electric Power Transmission and Distribution Engineering Co., Ltd. on 5 November to expand Sri Lanka’s electricity network. Sri Lankan engineering firm ComCorp Ltd. will serve as the local partner for the 87.7-kilometre high-voltage transmission line project. Funded by the Asian Development Bank, the contract covers a 78-kilometre, 132-kilovolt Matara–Hambantota line alongside substation connections at Homagama, Mirigama and Negombo. The project aims to increase transmission capacity, improve supply reliability and prepare the grid to integrate more wind and solar power generation.

Cabinet approves Rs 1.73 billion contract to resume Kelaniya University building construction

The Cabinet has approved resuming construction on a ten-storey building for the Faculty of Business and Management Studies at the University of Kelaniya. Work on the project had been suspended because of the economic crisis. The contract was awarded to Axis Structural (Pvt) Ltd for 1.73 billion rupees, excluding value-added tax, after the company submitted the lowest of 10 bids under national competitive bidding. The decision followed recommendations from the High-Level Procurement Committee and the Procurement Appeals Board. The Prime Minister submitted the proposal in the capacity of Minister of Education, Higher Education, and Vocational Education.

Cabinet approves road upgrade contracts under national highway and cyclone rehabilitation projects

The Cabinet has approved a proposal to award contracts for road upgrades under the National Highway Expansion and Improvement Project and a project rehabilitating roads damaged by Cyclone Ditwa. Submitted by the Minister of Transport, Highways and Urban Development, the contracts will go to the lowest substantially responsive bidders recommended by the High-Level Procurement Committee following national competitive bidding.

Doctors' alliance alleges Health Ministry officials stalled tender for cancer radiation machines

The Professional Alliance of Doctors for Medical and Civil Rights stated that cancer treatment services across several hospitals risk disruption because a tender for modern CT Simulator machines remains stalled within the Ministry of Health. Alliance Chairman Dr. Chamal Sanjeewa alleged that tender obstructions by certain ministry officials have indefinitely stalled the procurement project, which is funded by the Asian Development Bank. The machines were selected for hospitals in Anuradhapura, Badulla, Kurunegala, Ratnapura, and Hambantota, amid ongoing acceptance issues regarding CT Simulators at Maharagama Apeksha Hospital. Dr. Sanjeewa added that while modern Linear Accelerator machines are already installed in Ratnapura, Badulla, and Hambantota hospitals, safe and effective targeted radiation treatment cannot be provided without suitable CT Simulator machines.

Presidential commission completes coal procurement inquiry ahead of December deadline

The Presidential Commission investigating coal procurement has concluded its inquiries and will submit its final report to the President early next month. The commission's official term ends on 16 December 2026. Chaired by Supreme Court Justice Gihan Kulatunga, alongside Court of Appeal Justice Aditya Patabendige and High Court Justice Sanjeewa Somaratne, the commission recorded 370 statements, including evidence from 72 key officials. The commission questioned former Power and Energy Minister Patali Champika Ranawaka, who held the portfolio in 2010–2013 and 2015, over various allegations. Former ministry secretary M.C.C. Fernando, currently abroad, submitted facts through an affidavit.

Sri Lanka Air Force to procure four Israeli drones for Rs. 4.26 billion

Deputy Defence Minister Aruna Jayasekera told Parliament on 5 November that the Sri Lanka Air Force will procure four unmanned aerial vehicles from Israel for Rs. 4,261 million. The government-to-government purchase from Israel Aerospace Industries or affiliate BlueBird Aero Systems aims to boost maritime surveillance, search and rescue, and disaster response. The procurement includes two ThunderB drones and two aircraft with 20-hour endurance and vertical or short takeoff capabilities, plus training and three years of maintenance. Jayasekera said the cost would be absorbed by reallocated helicopter maintenance savings without new funding. However, Daily Mirror cited the Government Information Department stating Parliament approved funds drawn from the Consolidated Fund, other state funds, or loans. Following legal review by the Attorney General’s Department and Cabinet approval, the government targets signing the agreement in December.

Health minister lays foundation stone for Sathpethi autism centre at Lady Ridgeway Hospital

Minister of Health and Mass Media Dr. Nalinda Jayatissa laid the foundation stone on 6 November 2026 for the “Sathpethi” Autism and Neurodiversity Centre at the Lady Ridgeway Children's Hospital. The four-story project has a total estimated cost of Rs. 363 million, with Rs. 252 million allocated for building construction. President Anura Kumara Dissanayake previously allocated Rs. 200 million for the project in his first budget. The centre will provide therapies, ability enhancement, daily living skills development, and family-centered support for children with autism and other neurodevelopmental diversities. Dr. Jayatissa urged reducing the scheduled 546-day construction period to open the facility by December next year, calling for medical equipment procurement and staff training to proceed concurrently.

Government introduces amendment to regulate foundations, says Deputy Minister Sunil Watagala

Deputy Minister of Public Security and Parliamentary Affairs Sunil Watagala announced that an amendment to Act No. 17 of 1917 is being introduced to establish stability and make foundation registration mandatory. He noted that 199 foundations were established during the Seventh Parliament and approximately 120 in the Ninth Parliament. Existing provisions regarding domestic and foreign fundraising and mandatory succession by a founder's son will be changed. Under section five, trusts must provide information if requested by the Attorney General, the Director General of Customs, or the Procurement Authority. Watagala said the changes prevent trusts from being used as fronts and align with international charters.

Sri Lanka to purchase four drones for Air Force maritime surveillance

Deputy Minister of Defence Aruna Jayasekara announced that four unmanned aerial vehicles will be purchased for the Sri Lanka Air Force to strengthen security and surveillance in the country's Exclusive Economic Zone. Presenting an urgent procurement requirement under a Ministry of Defence supplementary estimate, Jayasekara stated that the maritime boundary covers 517,000 square kilometres, which is 27 times larger than Sri Lanka's land area. The drones will be deployed for intelligence gathering and reconnaissance, including monitoring suspicious vessels, fishing activities, and missing fishermen. Jayasekara noted that unmanned aircraft have contributed to national security operations since 1996.

Court concludes hearing in substandard immunoglobulin case against Keheliya Rambukwella and others

The Permanent Three-Judge Bench concluded the hearing on 4 November in the case against former Health Minister Keheliya Rambukwella and other defendants over the procurement of substandard Human Immunoglobulin vaccines. The court scheduled written submissions for 25 November and oral submissions for 30 November. Cross-examinations concluded after all defendants, except Dr. Jayanath Buthpitiya who evaded court, delivered statements from the dock. The Attorney General filed 13 indictments, alleging the defendants conspired to criminally misappropriate 1,444 lakhs in state funds by supplying 6,195 vials of non-medicinal substances to the Ministry of Health's Medical Supplies Division. The prosecution presented 350 witnesses and nearly 300 pieces of evidence following investigations initiated after October 2023 complaints.

Sri Lanka posted a Rs. 9.5 billion budget surplus in mid-2026

Sri Lanka’s budget swung to a surplus of Rs. 9.5 billion in the first half of 2026 from a Rs. 405.6 billion deficit a year earlier, according to the Finance Ministry’s mid-year fiscal report. Total revenue rose over 27% to approximately Rs. 2.95 trillion, boosted by a 25.9% increase in tax collections to Rs. 2.71 trillion amid surging vehicle imports. Non-tax revenue grew 43.6% to Rs. 243.6 billion. Total expenditure increased 7.9% to roughly Rs. 2.95 trillion. Capital expenditure and net lending reached just Rs. 276.6 billion, or 16.1% of the annual target, delayed by project phasing and procurement issues. The primary surplus rose to about Rs. 1.24 trillion, well above the International Monetary Fund's target of Rs. 72 billion. Total government debt stood at Rs. 32 trillion, representing 88.8% of estimated GDP.

Dr. Chamal Sanjeewa calls for investigation into cancer radiation machine tender

Consultant Physician Dr. Chamal Sanjeewa has requested the Health Ministry to launch an independent investigation into the procurement of Linear Accelerator cancer radiation therapy machines for the Apeksha Cancer Hospital and Galle National Hospital. The procurement is funded through an Asian Development Bank loan scheme. Dr. Sanjeewa questioned the proposed purchase of a 17-year-old model, warning that Sri Lanka could acquire outdated equipment. He alleged that medical physicists expected to serve on Technical Evaluation Committees attended a promotional presentation sponsored by a supplier's local agent on June 14, 2026, just nine days before tenders opened on June 23. Dr. Sanjeewa stated that such contact violates procurement guidelines and could undermine the fairness and independence of the tender evaluation process.

Deputy Minister Mahinda Jayasinghe says citizens need not fear new security laws

Speaking to the media in Colombo on Thursday (5), Deputy Minister Mahinda Jayasinghe stated that the government enacts legislation to ensure national security rather than suppress the public, adding that law-abiding citizens have no reason to fear new laws. Jayasinghe accused some opposition parties of inciting unnecessary panic over new bills. He affirmed that citizens have full freedom to protest peacefully and express their views, noting that the government is open to constructive criticism. He stated that the government is taking steps to completely abolish the Prevention of Terrorism Act, fulfilling an election pledge, while simultaneously preparing new legislation to protect the state from terrorism. Jayasinghe added that the law applies equally to everyone, noting that several individuals, including ministry secretaries implicated in unlawful procurements and irregularities, are now facing court proceedings and investigations by various law enforcement bodies.

Government plans to procure 100 electric buses from China for public transport

The Government plans to procure around 100 electric buses from China for public transportation, Transport Ministry Secretary Dr. Asiri Karunawardena said on 4 November 2026. He said work to set up charging infrastructure has started, with operations expected by early 2027. However, the procurement, total project costs, and funding via grant or loan remain undecided. Public Utilities Commission of Sri Lanka Spokesperson Jayanat Herath noted that promoting electric vehicles requires government policy. He added that the regulator oversees electricity charges and has allowed charging stations to operate without licences.

Government to award 89 bus route permits in November under new scoring system

Sri Lanka's government will award around 89 bus route permits in November under a Cabinet-approved scoring system, Deputy Minister of Transport and Highways Prasanna Gunasena announced. The National Transport Commission will select recipients through newspaper advertisements and a formal procurement procedure, replacing previous issuance methods. Gunasena clarified that the system applies only to national routes, as provincial transport remains outside ministry purview. The government is also revising the passenger bus fare formula to factor in maintenance and spare parts costs rather than fuel prices alone, addressing financial risks for private and state operators. Active daily private bus operations have declined to between 11,000 and 12,000 vehicles following pandemic-related sales, while the state-run Sri Lanka Transport Board operates about 5,000 of its 7,130 registered buses.

Cabinet approves Rs. 3.33 billion in contracts to restore cyclone-damaged roads

The Cabinet of Ministers approved three contracts worth Rs. 3,334.28 million, excluding taxes, to restore road infrastructure damaged by Cyclone Ditwa, Cabinet Spokesman Dr. Nalinda Jayatissa announced on Tuesday. Transport, Highways and Urban Development Minister Bimal Rathnayake submitted the proposal, which awards the projects to the lowest bidders selected through national competitive procurement. ELS Construction Ltd. received a four-month contract worth Rs. 852.83 million for sections of the Gampola-Nawalapitiya and Ulapane-Pussellawa roads. Lankadeepa and Virakesari also listed the Atabage-Ulapane road, with Virakesari identifying the first route as Kandy-Nawalapitiya. Jayasinghe Contractors Ltd. secured a two-month contract worth Rs. 1,516.08 million for the Wattegama-Kandenuwara-Wariyapola Road. RR Construction Ltd. was awarded a three-month contract worth Rs. 965.37 million for landslide-damaged sections of the Katugastota-Madawala-Bambaralla and Wattegama-Kandenuwara-Wariyapola roads.

Cabinet approves Kolonnawa battery storage contract awarded to Ceylex-Xingneng joint venture

Sri Lanka’s Cabinet has approved awarding a contract to a joint venture between Ceylex Engineering and Xingneng Electric Power Construction to develop the country’s first utility-scale battery energy storage system at Kolonnawa Grid Substation. Supported by the Asian Development Bank, the 100 MW/100 MWh facility aims to stabilize the national grid and integrate renewable energy. The consortium was selected after a procurement committee evaluated four international bids. Reports diverged on the tax-exclusive contract value. Economy Next and Daily FT reported components of 1.27 million US dollars, 2.61 million euros, and 555.13 million rupees, whereas Daily Mirror omitted the US dollar component.

Investigations launched into former ministry secretary and politicians over procurement and assets

Reports emerged in early November 2026 regarding investigations into alleged state procurement irregularities involving a former ministry secretary, alongside inquiries into the assets of several politicians. According to Dinamina, these developments test the government's anti-corruption pledges, highlighting the challenge of enforcing the law consistently on its own side rather than solely targeting past opponents. The analysis noted that tackling corruption requires preventing misconduct within the sitting administration, safeguarding public funds, and allowing independent institutions to fulfill their duties.

Keheliya Rambukwella testifies Ranil Wickremesinghe submitted cabinet paper on substandard drugs

Former Health Minister Keheliya Rambukwella testified during his trial that former Prime Minister Ranil Wickremesinghe, not him, submitted the cabinet paper regarding the importation of substandard drugs. The trial involves the procurement of substandard drugs that caused a Rs. 1,444 million loss to the government and resulted in patient deaths and suffering. Rambukwella gave the testimony from the witness box following his imprisonment over the incident.

Cabinet approves Rs. 1.3 billion contract to upgrade Kandy-Jaffna road section

On Monday, the Cabinet approved a Rs. 1,318.3 million contract excluding VAT to upgrade the Kandy-Jaffna (A9) road between kilometre markers 176+000 and 179+000. Daily Mirror reported the project covers a three-kilometre section through Vavuniya town, while FT.lk described it as three road sections under the national highway rehabilitation and improvement program. The contract was awarded to the lowest responsive bidder among seven submissions, named as Karnwel Constructions by Daily Mirror and Kanwel Constructions by FT.lk. Cabinet Spokesperson Dr. Nalinda Jayatissa stated the award remains subject to the Standing Procurement Committee's agreement. The proposal was submitted by Transport, Highways and Urban Development Minister Bimal Rathnayake, whom Daily Mirror identified as the acting minister.

Cabinet approves modern building project for Jaffna University Allied Health Sciences faculty

The cabinet approved a project on 15 September 2026 to construct a building with modern facilities for the University of Jaffna's Faculty of Allied Health Sciences. Bids have subsequently been invited under the National Competitive Procurement Procedure to select a suitable contractor to implement the project.

Keheliya Rambukwella denies submitting controversial emergency drug cabinet paper in court

Former Health Minister Keheliya Rambukwella told the Colombo Permanent High Court Trial-at-Bar that he did not submit the cabinet paper for the controversial emergency drug procurement process. Making a dock statement as the eighth accused in the substandard medicine case, Rambukwella stated that former Prime Minister and Finance Minister Ranil Wickremesinghe submitted the proposal that received cabinet approval. Rambukwella said his own memorandum on May 30, 2022, seeking to extend COVID-19 emergency procurements was not approved, though he acknowledged collective cabinet responsibility for the final decision. He testified that President Gotabaya Rajapaksa asked him to take over the health portfolio during the 2022 economic crisis, when foreign exchange reserves had dropped to 35 million US dollars.

CIABOC arrests former ministry secretary over Rs. 7.9 million theatre chair procurement

The Commission to Investigate Allegations of Bribery or Corruption arrested Gamini Kithsiri Dias Amarawardhana on 2 November 2026 over alleged corruption in procuring chairs for the Mahinda Rajapaksa Theatre in Polgolla. Amarawardhana, a former Secretary to the Ministry of Cooperatives and Internal Trade, was arrested around 9:45 a.m., according to Aruna. CIABOC alleged he caused a government loss of Rs. 7,973,114.50 by purchasing chairs from a private firm instead of the company offering the lowest bid meeting proper standards, conferring an undue advantage on an external party. The suspect was scheduled to be produced before the Colombo Chief Magistrate's Court.

Dr. Anil Jayanta cites bureaucracy and procurement delays for underutilized capital expenditure

Deputy Minister of Finance and Planning Dr. Anil Jayanta stated that bureaucracy and procurement delays prevent the government from fully utilizing annual capital expenditure allocations for development projects. Speaking at an investor forum, he noted that capital spending was 23 percent in 2023 and 25 percent in 2024, but rose to 76 percent in 2025. He cited international bidding procedures and technical resource shortages before project tendering. While online purchasing of goods is fast, expenditure on large constructions like roads, bridges, and government buildings remains slow. Jayanta added that the upcoming budget will allocate 2 trillion rupees for 2027 capital expenditure and introduce reforms discussed with the National Procurement Committee, alongside plans to privatize identified sectors, including logistics.