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 Finance Ministry Tender Raises Red Flags over Bid Fairness

Serious concerns have emerged over the transparency of a multibillion-rupee vehicle procurement tender floated this week by the Ministry of Finance, Planning and Economic Development, with everal industry experts warning that the tender conditions appear to favour a predetermined bidder.

The Ministry on Thursday called for sealed bids to supply 1,775 brand-new, diesel-powered, automatic transmission double cabs through a national competitive bidding process. However, the Ministry has allowed just 12 days for submission of bids from October 23 to November 4, 2025 leaving potential suppliers scrambling to meet the tight deadline.

The unusually short window, coupled with the absence of a pre-bid meeting, has raised questions about whether the process was designed to restrict competition. Tender analysts note that such brief bidding periods for a project valued at over Rs. 40 billion are atypical for government procurements of this scale, where due diligence, documentation, and logistics arrangements generally require weeks of preparation.

The tender’s technical and eligibility requirements have also drawn scrutiny. To qualify, bidders must demonstrate a minimum annual turnover of Rs. 10 billion during 2017–2019—a period preceding Sri Lanka’s vehicle import ban. This clause, experts argue, automatically disqualifies several legitimate local and regional suppliers who were unable to maintain such volumes during that restricted import period.

Additionally, the requirement that bidders must operate at least ten service and repair centres under their own ownership, with five located outside the Western Province, further limits participation. The exclusion of franchise networks or authorized service associates a common practice in the auto industry appears designed to restrict eligibility to one or two dominant players with nationwide infrastructure.

Sources in the motor trade allege that the conditions collectively point to a tailor-made bid, potentially pre-arranged for a known supplier with existing facilities and financial scale. “This level of technical specificity within such a short timeframe is unrealistic unless a party was pre-informed,” a senior procurement consultant said.

Further examination of the bid document reveals other detrimental clauses, including a requirement that all vehicles must be delivered within 60 days of contract award, a condition nearly impossible under current import restrictions and shipping delays. The document also specifies that vehicles must be of a “globally recognized brand with manufacturer warranty certification,” but fails to provide clear parameters leaving room for subjective interpretation by evaluators.

The Finance Ministry has defended the procurement as part of its effort to strengthen field-level operations of ministries and departments, particularly in sectors such as agriculture, irrigation, and land management. However, the lack of transparency, industry consultations, and adequate preparation time has amplified calls for an independent audit of the tender process.

Given the scale, value, and urgency of this procurement, the controversy highlights a growing concern that public tenders in Sri Lanka are increasingly vulnerable to pre-determined outcomes, undermining fair competition and public trust in state contracting practices.

“Cabinet approval has been granted for the urgent purchase of a number of essential vehicles and machinery for state institutions, and the government has decided to first purchase a certain number of double cabs from the total vehicle requirement for the year 2025 It was not immediately clear why the tender was being closed at short notice.

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