Western Province Governor Hemakumara Nanayakkara has permanently cancel the order to purchase 144 chairs for the Provincial Council, each costing Rs. 644,000.
The order was previously halted by him, temporarilily, pending a full investigation.
According to the Governor's order today, the process will be reviewed and new chairs will be purchased for councilors at a "reasonable price".
The move to purchase new chairs for the councilors at an exorbitant price drew harsh criticism on social media and political platforms.
Responding to critiques, Western Province Chief Minister Isura Devapriya said he saw nothing wrong in the deal, as the council had enough money to afford expensive, sophisticated chairs.
He said the opposition was stirring up the matter to tarnish his image, after agreeing to purchase high-priced, sophisticated chairs initially.
It was JVP Provincial Council member Lakshman Nipunanaarachchi who raised the matter first, and drew media's attention to the purchase.
Ironically, Devapriya is an ally of President Maithripala Sirisena who often requests politicians to resort to austerity measures to save public money.