The Hon. (Dr.) Prasanna Gunasena – Deputy Minister of Transport and Highways

¶ 01 Hon. Deputy Speaker, three sets of Regulations under two Acts are presented today. First, under the National Transport Commission Act, No. 37 of 1991, Regulations published in Gazette Extraordinary No. 2471/68 dated 2026.01.17 relating to the assignment of passenger service permits are presented for the approval of this august Parliament.

¶ 02 Under Section 28 of the National Transport Commission Act, No. 37 of 1991, read with Section 24, a person holding a passenger service permit cannot assign it to another. If such an assignment is made, it is void and of no effect.

¶ 03 In practice, because formal assignment was prohibited, we observed that ownership and control of passenger service permits had been informally transferred to other parties via powers of attorney. This created significant regulatory and service-delivery problems. To resolve this, by the 2025 Amendment Act, No. 8, which amended Section 28, we have introduced a framework to lawfully transfer passenger service permits to another party, subject to conditions.

¶ 04 When considering a transfer, we assess key criteria: how the bus has operated historically on the route; whether any court proceedings are pending in respect of the permit; whether there are persistent public complaints; and whether any internal or institutional inquiry is ongoing. Only after these checks do we authorize transfer to a new permit-holder.

¶ 05 Further Regulations set operational conditions. For example: - From the date both parties sign the transfer agreement until completion, the bus must continue to operate on its authorized route to avoid service disruptions. - The transferee must demonstrate financial capacity by maintaining a minimum balance of Rs. 2 million in a bank account over the preceding six months.

¶ 06 This financial capacity requirement addresses the trend of treating permits as tradable commodities, creating chains of buying and selling, rather than ensuring competent operators. It ensures operators have the means to repair vehicles after accidents or mechanical failures and maintain continuous service.

¶ 07 As of 12 February, we had received 320 applications for regularization of ownership; 98 have been approved and those buses have been transferred to the applicants’ names. Another 38 are under review. We have not received objections regarding the Rs. 2 million balance requirement from any applicant.

¶ 08 On issuing new permits for routes, we have obtained Cabinet approval for a transparent, points-based allocation system so applicants can know their scores and eligibility, minimizing political discretion.

¶ 09 Currently, the NTC has issued 2,493 route permits for buses operating on designated routes and 75 for operation on other specified routes, totaling 2,568 validly operating buses. However, 49 permit-holders have officially returned their permits to the NTC stating inability to operate, and 308 additional issued permits are not currently in operation without formal surrender. Thus, 357 issued permits are off-road.

¶ 10 We have granted a grace period until 30 June to recommence operations and maintain permit validity. Thereafter, under the Cabinet-approved points procedure, we will tender these permits so eligible applicants can obtain them. In parallel, based on district coordination committee recommendations and demand surveys now underway, we will call tenders for new permits, including AC services where justified, from 17 June onwards.

¶ 11 Separately, under the Motor Traffic Act, by Gazette Extraordinary No. 2470/14 of 2026.01.05, we propose to reserve special forward registration numbers beyond the current sequence, up to 100,000 numbers ahead, for all motor vehicles except motorcycles, motor tricycles, and motor tricycle vans, on payment of prescribed fees: - Up to 10,000 numbers ahead: Rs. 1,000,000 - Up to 20,000 ahead: Rs. 2,000,000 - Up to 30,000 ahead: Rs. 3,000,000 - Up to 40,000 ahead: Rs. 4,000,000 - Up to 50,000 ahead: Rs. 5,000,000 - From 50,000 to 100,000 ahead: Rs. 10,000,000

¶ 12 This will generate non-tax revenue while offering a premium option to registrants.

¶ 13 Finally, regarding vehicle number plates, there has been public concern about issuance timelines. A new tender has been awarded and signed on 2026.03.10. Under that agreement, printing must commence within three months, i.e., by 2026.06.10.

¶ 14 Thank you, Hon. Deputy Speaker.