Sri Lanka’s Cabinet of Ministers has approved a proposal to purchase 600 deluxe buses at a cost of Rs. 14.4 billion to enhance intercity and long-distance public transport services, Health and Mass Media Minister Nalinda Jayatissa announced.
The government budget had initially allocated Rs. 14,400 million to the Sri Lanka Transport Board (SLTB) for the purchase of 600 standard buses with seating capacity of 49 to 54 passengers.
However, following the introduction of the Road Safety Plan 2025–2026, the required specifications for buses operating on intercity and long-distance routes were revised, with greater emphasis on passenger comfort and safety.
According to the updated requirements, deluxe air-conditioned buses are considered more suitable for long-distance and intercity services compared to standard models.
As a result, Cabinet approval was granted to replace the planned purchase of standard buses with 600 deluxe air-conditioned buses, while utilising the already allocated budget provisions.
The initiative is expected to improve the quality of public transport services by providing passengers with more comfortable and efficient travel options across Sri Lanka’s long-distance transport network.
Sri Lanka Central Bank Holds Policy Rates Steady Amid Economic Recovery
The Central Bank of Sri Lanka (CBSL) has decided to maintain its Overnight Policy Rate (OPR) at 8.75 percent, following a review of domestic and global economic conditions.
The Monetary Policy Board said the decision was taken after considering the evolving economic outlook, including renewed geopolitical tensions in the Middle East, rising global commodity prices and their potential impact on Sri Lanka’s economy.
According to the Central Bank, global oil prices have increased due to the Middle East tensions, creating risks for global growth and domestic inflation. However, the Bank noted that Sri Lanka’s inflation outlook remains manageable, with inflation expectations continuing to remain anchored around the medium-term target.
Headline inflation accelerated to 6.8 percent year-on-year in June 2026, mainly driven by increases in domestic energy and food prices. The Central Bank expects inflation to remain above the 5 percent target in the near term before gradually returning towards the target level. Core inflation is also expected to rise and remain around the headline inflation target.
The CBSL said that despite the recent increase in inflation, the rise has been largely supply-driven, while stronger domestic demand conditions are also contributing to economic activity. The impact of monetary policy tightening introduced in May 2026, along with other government measures, is expected to help moderate credit growth and demand pressures in the coming months.
The Central Bank also highlighted developments in Sri Lanka’s external sector. While pressures caused by the Middle East conflict have eased to some extent, uncertainty remains due to continued geopolitical risks.
Since April 2026, Sri Lanka’s current account position has recorded a deficit, mainly due to higher fuel import costs widening the trade deficit and a slowdown in tourism earnings.
Meanwhile, the Central Bank noted that workers’ remittances have remained strong during 2026, while gross official reserves stood at US$6.45 billion at the end of June 2026, despite foreign debt service payments.
The Sri Lankan rupee has also shown signs of stabilisation in recent weeks, supported by policy measures implemented by authorities.
The CBSL said it will continue monitoring inflation trends, economic activity and global developments while maintaining appropriate monetary policy measures to support price stability and sustainable economic growth.
Sri Lanka to Purchase 600 Deluxe Buses Under Rs. 14.4 Billion Public Transport Upgrade Plan
