UTV | COLOMBO – Although provisions are furnished for local selections in the government procurement guidelines, it has been observed the available limits to achieve benefits for the local suppliers and companies from those provisions.
However due to the circumstances generated by COVID-19, the Government has been requested by local companies and entrepreneurs to provide more assistance.
Taking this into consideration, the Government will attempt to give more opportunities to local companies so they can in turn generate more employment opportunities and expand their businesses.
Accordingly, the Cabinet of Ministers had approved the following proposals submitted by Prime Minister as the Minister of Finance, Economic and Policy Development to allow local companies and entities with 51% Sri Lankan ownership to get preferential treatment when bidding for Government tenders. Industries that the new regulatory changes will support include: Software companies, furniture manufacturers, construction and hardware.
Accordingly, under this proposal;
i) Procurement of office furniture will only be from companies that have at least 50% domestic value addition.
ii) All software should be procured from local firms, and if it is not possible, approval has to be received from Sri Lanka Information and Communication Technology Agency (ICTA).
iii) Hardware supplies for which specifications has to be developed by the ICTA, will get a 30% preference if domestic value addition in 25% or more.
iv) Under the new proposals, it has also been decided that all constructions, including houses, highways, and irrigation, water supply and sewage systems should be given to local contractors. The value of the contracts, if given as sub-contracts to foreign contractors, should not exceed 10% from the contract value without temporary funds.
The Finance Ministry will work to issue the amended procurement guidelines in consultations with the National Procurement Commission.