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Hidden costs of inefficient procurement and tender delays: Ravi K.

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By: Staff Writer

June 23, Colombo (LNW): Sri Lanka’s public procurement process tainted with tender malpractices and rigging by a selected group of suppliers in connivance with some corrupt officials have been causing a massive economic loss says former finance minister Ravi Karunanayake 

Fair and open competition is the best and the most transparent way to overcome the delay in Sri Lanka’s public procurement from tendering to contract of intent and award of final purchase order for all high value tenders, he pointed out 

Competition among suppliers helps the government to obtain the best value for money for the procurement of the goods and services.

On the other hand, when competition is curtailed, suppliers get an opportunity to engage in bid rigging in tender procedure leading to   the wastage of taxpayers’ money as government pays more than a fair price for goods and services procure.

The major weaknesses noticeable in the procurement system are the extensive delays in contract awards and non-compliance to rules and regulations.

This has been aggravated by frequently changing, inconsistent guidelines, poor monitoring, inadequate knowledge and skills of officials, and institutional support at present despite the policy decisions taken at the highest level, he claimed.

Non-availability of standard contract documents and specifications, weak contract administration etc., resulting in huge cost and time over-run in many development projects.

The complexity and technicalities characteristic in public procurement in Sri Lanka create an opportunity for agents or middlemen, as there is possibility for those acquainted with the complicated process to assist bidders in piloting the process, Mr Karunnyake disclosed.

Although the proposed public procurement law scheduled to be introduced in December this year there is an absence of a proper legal framework at present where procedure, accountability, transparency and remedies are prominent, he added.

This process is fragmented among three layers in the government: departmental, ministerial, and cabinet levels with no mechanisms for ensuring procedural consistency, efficiency, or integrity

The responsibility for executing procurement is vested with secretaries of respective line ministries. Technical and bid evaluation committees are set up per the delegation of authority at the line ministry and Cabinet level.

The Cabinet Appointed Procurement Committee (CAPC) has to undertake procurements above certain limits and empowers Cabinet to decide on the successful bid based on the CAPC recommendation

Integrity risks in the procurement process are particularly high when executing agencies elect to use non-competitive procedures such as direct contracting to a pre-identified supplier or service provider and, emergency procurement

Public procurement is considered to be a major expenditure in Sri Lankan economy, costing around US$ 4.6 billion, or 24% of total government expenditures and 6.3% of GDP.

This was disbursed through more than 1000 procurement committees assisted by technical evaluation committee’s cabinet appointed procurement committees and public contracting services.

Even under this setup there were delays of one month to 3 years or more in procurement activities of foreign and local funded projects making time lines for award of contracts longer than it is done in any private organisation, he explained.   

Classical examples of intermittent delays and irregularities in tender procedures were pharmaceuticals, e national identity cards, e driving licenses, e passports, coal, fuel, gas etc.

There was 10-month delay in the procurement process for health supplies including pharmaceuticals, and the manner in which emergency purchases are made by the health ministry is under investigations.

The State Pharmaceutical Corporation (SPC) procures and supplies medicines to the ministry and to the private sector market through an open competitive tender procedure.

All expenses incurred in the purchases are advanced by the SPC from its own funds and subsequently collected from the ministry.

Awarding mega project or commodity tenders such as fuel and coal without competing bids and a lack of clarity in the government procurement leads to reports of large-scale corruption

It undermines competition and can push up the price of contracts, leading to a waste of scarce public resources, Mr Karunnayake pointed out.

The current reality is that speedy implementation of procurement process means monitoring time lines for award of contracts as it is done in any private organisation, he said.

Sri Lanka expressway way toll collection declines by cashiers stealing

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By: Staff Writer

June 23, Colombo (LNW): Sri Lanka expressway cashiers stealing 10 to 20-pct of toll revenue is continuing despite the introduction of electronic toll collection (ETC) system at expressways to help alleviate traffic congestion, reduce delay, fuel consumption, and vehicle emissions, official sources revealed.

A cashier at manual toll collection (MTC) centres in expressways takes around 12 to 15 seconds to collect the toll from a single vehicle and hand back the receipt.

The ETC could reduce this to around six seconds and help the vehicles leaving the expressways faster. This would be very helpful during rush-hours where we usually see lines of vehicles at toll collection centres, a high official of the Road Development Authority(RDA) said.

ETCs are currently installed at the Colombo – Katunayake Expressway and Colombo Southern expressway etc.

Mal practices could be reduced promote this by starting to use pre-paid ETC cards. If we promote the ETC pre-paid card system it could help reduce traffic congestion at inter-changes by allowing drivers to move in and out of toll systems without delay.

Most of these corrupt practices could be solved by transferring expressways can be transferred from the Road Development Authority (RDA) to the State-owned company named Sahasya Investments Ltd (SIL) soon he added.

In a startling revelation cashiers at Sri Lanka’s expressways are found to be stealing up to 20 percent of fees Secretary to the Highways Ranjith Subasinghe told the parliament’s Committee on Public Enterprises.

Members of the committee said highway tolls of the Road Development Authority had surged on the day when the military had operated the booths during a strike by cashiers, raising questions about the collections on other days.

“Based on the day the Army operated the toll booths, there is a minimum of 10 to 20 percent revenue leakage,” Rubasinghe told the COPE according to the broadcast recording of proceedings.

An RDA official said 19 cashiers have so far been identified but there were not enough cashiers to run the toll booths so they have not been interdicted.

The Representative of the Auditor General’s office questioned how officers who have been found to have committed fraud remain in the public service.

RDA officials said there was shortage of cashiers but some who were placed in offices as management assistants and sought an order from the COPE direct them to be placed as cashiers.

There was also a move to hire persons on service contracts until and electronic toll system comes on line next year and place them on the entry booths and not exits.

An RDA officer said several cashiers manning the exit at Athurugiriya was found to have been stealing money, but no action could be taken due to a shortage of cashiers. It was done by shutting off CCTV cameras and cutting wires.

All Ceylon Agrarian Federation opposes privatisation during election period

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June 23, Colombo (LNW): The All Ceylon Agrarian Federation addressing a briefing yesterday (22) asserted that no decisive actions regarding national assets should be taken during the lead-up to a Presidential Poll.

Namal Karunaratne, the Federation’s National Organiser, highlighted that in 25 days, the Election Commission will have the authority to announce the Presidential election date.

He expressed concerns over plans to privatise key national assets, specifically mentioning the sale of Milco and thirty-one farms under the National Livestock Development Board (NLDB).

There is information indicating a cabinet paper for this sale is expected to be resubmitted on June 26, Karunaratne revealed.

He emphasised that the government lacks a public mandate to privatise national assets and insisted that those involved should be held accountable to the people.

Lawyers’ Collective condemns Executive remarks on Judiciary

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June 23, Colombo (LNW): The Lawyers’ Collective has issued a strong condemnation of remarks made in Parliament by President Ranil Wickremesinghe, Justice Minister Wijeyadasa Rajapakshe, Education Minister Susil Premjayantha, and MP Dayasiri Jayasekara.

The criticism stems from comments by the President and Ministers that were dismissive of recent Supreme Court rulings.

President Wickremesinghe labelled a Supreme Court decision on the Gender Equality Bill as “judicial cannibalism” and suggested forming a Parliamentary Select Committee to review it.

Justice Minister Rajapakshe drew a controversial comparison between the Court’s orders and the suspension of civil rights under Adolf Hitler.

The Lawyers’ Collective argues that these statements, along with accusations against judges by the Justice Minister, are attempts to intimidate the judiciary.

They emphasise that judicial independence is fundamental to Sri Lanka’s democracy, and that such comments from the Executive undermine the rule of law, separation of powers, and public trust in the judiciary.

While recognising the right to free speech, the Collective stresses the Executive’s duty to uphold the balance of power and prevent the erosion of judicial authority.

The statement also expresses concern that these comments are part of a broader pattern of intimidation by the Executive, particularly amid recent legal challenges to government actions.

They view these remarks as politically driven efforts to weaken public confidence in the judiciary and democratic processes.

TMVP pledges support for RW in upcoming polls

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June 23, Colombo (LNW): State Minister Sivanesathurai Chandrakanthan, leader of the Tamil Makkal Viduthalai Pulikal (TMVP), has affirmed his party’s support for President Ranil Wickremesinghe in the forthcoming presidential election.

This endorsement was made during a meeting at the TMVP headquarters in Batticaloa, attended by President Wickremesinghe and TMVP members.

Minister Chandrakanthan highlighted the TMVP’s commitment to advancing President Wickremesinghe’s development agenda for the Eastern Province.

He emphasised that supporting the President’s plans would create economic opportunities, particularly for the agricultural community, fostering self-sufficiency.

In response, President Wickremesinghe outlined his vision to strengthen the national economy and address longstanding ethnic issues comprehensively.

He underscored the importance of unity in achieving these objectives and reiterated his dedication to the holistic development of the Eastern Province over the next five years.

Deadline extended for SL residents over 40 to apply for NICs

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June 23, Colombo (LNW): The deadline for Sri Lankan residents over the age of 40 who do not possess a national identity card has been extended to 30th June.

Pradeep Saputanthri, Commissioner General of Registration of Persons, announced that this initiative aims to support individuals who have been unable to acquire an ID card due to the absence of birth certificates.

Applicants can submit their forms via their Grama Niladharis.

UK rejects appeal to lift LTTE terrorist designation

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June 23, Colombo (LNW): The UK Proscribed Organisations Appeals Commission has denied the Transitional Government of Tamil Eelam’s (TGTE) request to remove the Liberation Tigers of Tamil Eelam (LTTE) from the UK’s list of terrorist organisations.

Sri Lankan Foreign Minister Ali Sabry confirmed that the LTTE will remain proscribed in the UK.

He announced on ‘X’ that the independent appeals commission, chaired by a high court judge and two retired senior diplomats, upheld the terrorist designation.

The TGTE, advocating for an independent Tamil state in north-east Sri Lanka, had appealed for the LTTE’s ban to be lifted.

Sabry also noted that while the TGTE is not banned in the UK due to its non-violent pursuit of political aims, the LTTE’s international network aims to get foreign governments to lift the ban in order to revive the group.

Tree blockages disrupt up-country railway services

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June 23, Colombo (LNW): Train services on the Up-country Line have been halted by fallen trees obstructing the tracks between Inguru Oya and Galabada railway stations since early this morning (23), reports claimed.

The Department of Railways is actively clearing the tracks to resume services.

In the meantime, the ‘Tikiri Menike’ train travelling from Nanu Oya to Colombo Fort is stationed at Hatton railway station, waiting for the tracks to be cleared.

Heavy showers, strong winds expected in multiple provinces: Dept

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June 23, Colombo (LNW): Showers will occur at times in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara Eliya, Galle and Matara districts, with fairly heavy showers about 75mm being likely to occur at some places in Western and Sabaragamuwa provinces and in Kandy, Nuwara Eliya and Puttalam districts, the Department of Meteorology said in its daily weather forecast today (23).

Several spells of light showers will occur in Northern province and in Matale and Anuradhapura districts.

Strong winds of about (40-50) kmph can be expected at times over the Western slopes of the central hills, Northern, North-central and North-western provinces and in Trincomalee, Hambantota and Monaragala districts.

Marine Weather:

Condition of Rain:
Showers will occur at several places in the sea areas off the coast extending from Puttalam to Hambantota via Colombo and Galle.
Winds:
Winds will be south-westerly and wind speed will be (35-45) kmph. Wind speed can increase up to (60-65) kmph at times in the sea areas off the coasts extending from Trincomalee to Chilaw via Kankasanthurai and Puttalam and from Hambantota to Pottuvil. Wind speed can increase up to (50-55) kmph at times in the sea areas off the coasts extending from Chilaw to Hambantota via Colombo and Galle.
State of Sea:
The sea areas off the coasts extending from Trincomalee to Chilaw via Kankasanthurai and Puttalam and from Hambantota to Pottuvil can be very rough at times. The sea areas off the coasts extending from Chilaw to Hambantota via Colombo and Galle can be rough at times. Waves heights may increase (about 2.0–2.5 m) in the sea areas off the coast extending from Kalpitiya to Pottuvil via Colombo, Galle, and Hambantota (this is not for land area). Naval and fishing communities are requested to be attentive in this regard.

IS SIR “MISSED”…?

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June 21, (LNW) Colombo : Nalin de Silva, who was the Acting President of Sri Lanka Rugby when the administration was disbanded, was best known for addressing everyone as ‘Sir’. After he was appointed as the Acting President, it was seen that he was going on a different path, different from the opinions of the person who was in control. It seems that he is endorsing a system that places Sri Lankan rugby under the control of several sports clubs, especially considering that he even agrees to a constitutional change necessary to remain in power. Also, it seemed that he was suffering from the desire to remain as the President without doing anything related to the election.


For these reasons, we objected to the Director General of Sports naming Nalin de Silva as a facilitator for rugby before a rugby election. This decision was also criticized within the field. His name is also mentioned in the letter submitted by former President Rizly Illyas to the ombudsman, appointed by the Minister of Sports, to investigate and punish the former officials. It is not known on this basis, but he is not seen to provide facilities in the field or anything at this time and perhaps in view of the objections that have arisen it is unethical to assign him responsibilities, so remove him from the top or make him more credible as an ex-army officer. It may seem withdrawn. We have previously advocated for the conviction of the officials involved in the incident that led to the downfall of Sri Lankan rugby, resulting in a £50,000 fine that damaged the reputation of Sri Lanka Rugby. At the time when the fine was imposed by the International, Nalin was in the position of secretary. Therefore, we believed that if the officials who contributed to the wrongdoing were not charged or punished, it would result in loss of confidence in the country’s governance related to the Immigration Act, due to political pressures and set a bad precedent allowing criminals to evade justice with officials’ privileges. It has been 10 years now, but the country has not apologized for this incident. The officials responsible for separating the fines from the annual international community contributions meant for the development of Sri Lanka Rugby are still seeking rugby positions.


It is crucial to take action now in this situation and instill a fear of making mistakes. If the culture of knowingly committing errors or assuming protection regardless of actions taken becomes entrenched, it will set a harmful precedent for future generations. Currently, there is no fear of wrongdoing because those officials hold high positions in Sri Lanka. Furthermore, within Sri Lanka’s rugby field, they continue to assert their influence as moral authorities in certain matters. We must acknowledge that rugby in Sri Lanka being controlled by several sports clubs has diminished the influence of existing regional associations. Often, talent is scouted from these regional leagues to nurture players for national teams and major clubs. It is true that currently only a few clubs with a history of nearly a hundred years or more are actively involved in playing rugby. The youngest among these longstanding sports clubs, the Army team, joined in 1962. However, opportunities in first-class rugby are also seen through mobilizing talent across various social and political foundations. Recent examples include the Up Country Lions team, facilitated by Mahindananda Aluthgama, and the Hambantota Sharks team, supported by Rajapaksa, being included in the first-class competition category. Their political connections enabled them to recruit talent into their respective teams.


But in a different way, before entering the first division, the team that wins the second division should be admitted to the first division and the last team of the first division should be brought to the second division. This step is crucial for enhancing competition levels and improving game quality across both divisions, emphasizing the importance of nurturing local leagues and overseeing sports clubs through them. But the Minister of Sports in the matters told to the media says about Rugby, it is clear that a plus mark has been used for the request of the sports clubs. But the minister himself is currently experiencing Tarushi who is participating in the Olympics from Pathadumbarin beyond the ring. Nadisha Dilhani Lekamge, who emerges from Parakadu. The amazing performance of the little players emerging from the villages of women’s cricket. While the sports minister is talking about the need to facilitate village sports, the minister does not think about the importance of sticking to eight sports clubs in relation to rugby. They are deceiving their supposed allies. The more professional experience of the people intervening in certain legal matters of the minister is likely to be filled with the expectation of the importance of separating a group on both sides even if it is an advice given about rugby. That’s because the advantageous position they have from experience is based on separation and change.Those people who stand for the minister in certain legal matters and do it according to the needs of themselves and their loved ones say over the phone the results sometimes in the main rugby clubs of the country, the words go to alcohol parties in such a way that the reputation of the minister is also damaged.


More importantly, Harin Fernando has an understanding of the external image as much as his associate’s advice. If not, you can’t stop feeling that you are standing alert in one place and standing in another place with difficulty. We believe that Harin Fernando will be able to walk easily among the people who are looking for rubbish to such an extent, and while ensuring the village sports, the same person will make the rugby tri and get points to the regional leagues and explain its value to the world. It is also seen that the Sports Development Department is currently trying to come to the right place in a good decision regarding Ruger. We believe it will be a fitting end to an exemplary future for Ruger. We see it as a good sign that Nalin misses everyone there. Because ministers and officials often understand the facts according to the associations of friends around them and when someone presents an idea, it is a fashion of politicians and officials in Sri Lanka to think that the holder of that idea does not know. On the other hand, there is no dearth of those who abuse the friendship and trust of the minister and the official in search of privileges. In such a situation, the “missing of Sir” that we may see is a decision made after studying the facts responsibly.