State banks say deal on luxury SUVs for MPs suspended

Friday, 11 June 2021 00:15 - - {{hitsCtrl.values.hits}}

The controversial move to import luxury SUVs for Members of Parliament has been suspended, State bank sources told the Daily FT yesterday.

“The buyer and seller have agreed not to proceed with SUV component but other imports such as ambulances will be pursued with,” banking sources said.

They also said there was no issue with cancellation, contrary to a remark by a Cabinet Minister that it was not possible.

The original decision by the Cabinet of Ministers was to lease 227 brand new Toyota Land Cruisers, 17 brand new Toyota Hilux 4WD double cabs, 1 brand new Toyota Land Cruiser V8, 52 brand new Hino cab Intercooler Turbo, 51 brand new Toyota Hilux 4 WD double cabs with intercooler, one brand new Toyota Hilux 4 WD with intercooler and 50 brand new Toyota high-roof ambulances.

Of the 399 vehicles, 225 were for MPs.

The LC value of the entire purchase was Rs. 3.5 billion.

Prime Minister Mahinda Rajapaksa recently said the luxury vehicles deal for MPs was off and the previous Cabinet paper had been withdrawn since the country had to save valuable foreign exchange reserves given the pandemic and debt service challenges this year.