Thirty-year-old issue in private bus industry resolved with new gazette

By Mangala Pavithrani

Colombo, Feb. 5 (Daily Mirror) - A long-standing issue in the private bus industry spanning more than three decades was resolved today with the coming into effect of a gazette notification (2471/68) permitting the legal transfer of passenger service permits, Minister of Transport, Highways and Urban Development Bimal Ratnayake said.

Addressing a media briefing at the Transport and Highways Ministry, the Minister said the long-practised informal contracting and transfer of bus service permits has now been regularised under a clear legal framework.

“In the past, many bus owners transferred permits through illegal methods, creating numerous complications and delaying the development of the industry. This new process will not only protect existing bus operators but also encourage new entrepreneurs to enter the sector,” Minister Ratnayake said.

He noted that the new system would help resolve long-standing issues faced by bus owners, particularly in the Northern Province, while also creating opportunities for young entrepreneurs to join the industry.

Under the National Transport Commission (NTC) Act No. 38 of 1991, the transfer of passenger service permits was previously prohibited and deemed null and void. However, considering the practical difficulties faced by bus owners, provisions allowing permit transfers were introduced through the National Transport Commission (Amendment) Act No. 08 of 2025.

Accordingly, the Passenger Service Permit Transfer Order No. 2471/68, dated January 17, 2026, has now been gazetted, providing the legal basis for transferring passenger service permits.

The Transport and Highways Ministry, together with the NTC, has granted permission for bus owners to legally transfer permits to eligible transferees under a national programme aimed at managing the bus industry in a systematic and efficient manner.

Under the new regulations, transferees must demonstrate financial capacity of up to Rs. 2 million over the past six months, while transferors are required to submit relevant documents through the NTC’s online system. Any transfer carried out under a power of attorney must be completed prior to initiating the permit transfer.

The Minister said that accurate submission of documents and correct information would ensure the transfer process is completed without delays. He also noted that in the future, when four or more passenger service permits are issued for a particular route, new permits will be issued at a rate of 25 percent.