Lanka Ashok Leyland PLC, a joint venture between Ashok Leyland and Sri Lankan government owned Lanka Leyland Ltd, is expected to bag an order worth around Rs 237 crore from the Sri Lankan government. The Sri Lankan government is talking with the commercial vehicle major to supply around 2,200 new buses.
The Sunday Times Sri Lanka reported that the government will buy 2,200 new buses at a cost of more than Sri Lankan Rs 5 billion (around Rs 237 crore) for the Sri Lanka Transport Board from next year.
“The recommendation came from Transport Minister Kumara Welgama who has proposed that a supplier’s credit be negotiated with the manufacturer — Lanka Ashok Leyland PLC — for this purpose,” said in the report.
It was further stated that the Cabinet has appointed a negotiating committee to discuss bulk discounts offered by the company and it was chaired by Technology and Research Ministry Secretary Dhara Wijethilake will include Transport Ministry Secretary Dhammika Perera, Petroleum Industry Ministry Secretary R S S. Samaratunga, Productivity Promotion Ministry Secretary Damitha de Zoysa, and the Treasury’s Deputy Secretary B M S Batagoda.
The report stated that the ministers have also agreed to allocate Sri Lankan Rs 1000 million a year for five years from the General Treasury to settle the cost of buying these buses for the SLTB and for the SLTB to bear the balance costs.
Lanka Ashok Leyland was incorporated in 1982 as a Public Limited Liability Company and started its operations in 1983 as a Joint venture between Lanka Leyland Ltd (which holds 41.77 %), a wholly owned company of Government of Sri Lankam and Ashok Leyland Ltd (which holds 27.85 %) and general public (30.38 %) to carry out the business of importation of Ashok Leyland commercial vehicles in knock down condition or fully built and carry out assembly operations, repair and service, body building on chassis and other developments to progressively develop ancillary industries locally.
According to company’s website, more than 42,000 trucks and buses put onto Sri Lankan roads in the past 29 years and the company’s market Share increased from 13% 20 years ago to 60% currently.
The company also offers largest range of trucks and buses in the 8 tones GVW to 45 tones GTW range.