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Monday June 3rd, 2024

Sri Lanka railways in losses despite fare hike

ECONOMYNEXT – Sri Lanka’ state railways has seen a surge in demand after a collapse of the rupee pushed up costs of private transport, but the agency is still unable to recover fuel costs despite a fare hike, General Manager W A D Gunasinghe said.

In 2022 Sri Lanka’s rupee collapsed from 182 to 360 to the US dollar after two years of money printed to keep interest rates down for stimulus, driving up costs.

Sri Lanka’s rupee was 4.70 to the US dollar when the power to print money to manipulate rates was given to economists in 1950, and the people have not been able to take it away up to now by curbing open market operations by law. Instead legislators have given powers to the central bank and other bureaucrats to curb economic freedoms of the people with exchange and trade controls.

In 2021 Sri Lanka railways lost 10.3 billion rupees up from 10.05 billion rupees in 2020 according to central bank data. In 2022 fares were hiked to half that of buses under Transport Minister Bandula Gunewardene.

Sri Lanka Railways saw a surge in demand in 2022 as bus fares went up and fuel prices also pushed up costs of private transport but the agency was unable to recover fuel costs, not counting salaries and other expenses.

In May Sri Lanka Railways had earned revenues of 357 million rupees and fuel costs was 669 million rupees, leaving a gap of 312 rupees, Gunasinghe said.

In June after diesel prices were raised, fuel costs went up to 1.3 billion rupees 432 million rupees, leaving a loss of 868 million rupees.

In July revenues went up to 589 rupees and fuel cost was 1.3 billion rupees leaving a loss of 711 rupees.

In August revenues went up to 1,040 million rupees after a fare hike which was still more that 200 million rupees below the cost of fuel.

Sri Lanka railways is starting weekend tourist trains to Kandy on a fully cost recovery basis, Transport Minister Bandula Gunawardana said.

On Saturday and Sunday an air conditioned train will leave Colombo Fort at 6.30 and arrive in Kandy at 9.20 am. It will leave Kandy at 4.50 pm and arrive back in Colombo by 7.40 am. A first class one way ticket is 2000 rupees and second class 1500 rupees.

A train to Anuradhapura is also planned, he said.

Minister Gunawardana said railways had properties which was occupied by various persons who were not paying rent on time.

“I urge people to pay at least part of the rent due to railways,” he said.

Recently after a meeting with users of railway property in Polonnaruwa with the participation of divisional secretaries and railway officials in a weekend, people paid 1.6 million rupees in rent arrears. (Colombo/Sept30/2022)

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  1. sacre blieu says:

    How can they keep even a smidgen of profits when, similarly to government/political handling of our assets, while maintaining the running stock which is to an extent where it is disgracefully managed? One of the perfect examples of how to ruin a great asset. And how do we promote tourism, when another goldmine Kalpitiya is left in the lurch and even transport is neglected? The downward train from Puttalam, formerly scheduled for 4.30 pm now runs at 5.00 pm. The engine on the 2nd October 2022, was very old and even the carriages were very old and dirty, giving the obvious reflection of neglect and not properly serviced, including whatever toilets available. Suddenly the train breaks down midway. Time lost app:45 min., and even unloading packages takes too long. It arrived at Fort Station at app:11.00 pm. At even an average speed the train rocks very much an indication that the suspensions have physically collapsed and not been replaced. Tourists should be encouraged to travel by better train service and even the transport from Palavi organised and dependently to carry them to and from the tourist spots. The ticket cost 3rd class Rs. 260/-, the bus 700/-. The train was full, both upward and return.

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  1. sacre blieu says:

    How can they keep even a smidgen of profits when, similarly to government/political handling of our assets, while maintaining the running stock which is to an extent where it is disgracefully managed? One of the perfect examples of how to ruin a great asset. And how do we promote tourism, when another goldmine Kalpitiya is left in the lurch and even transport is neglected? The downward train from Puttalam, formerly scheduled for 4.30 pm now runs at 5.00 pm. The engine on the 2nd October 2022, was very old and even the carriages were very old and dirty, giving the obvious reflection of neglect and not properly serviced, including whatever toilets available. Suddenly the train breaks down midway. Time lost app:45 min., and even unloading packages takes too long. It arrived at Fort Station at app:11.00 pm. At even an average speed the train rocks very much an indication that the suspensions have physically collapsed and not been replaced. Tourists should be encouraged to travel by better train service and even the transport from Palavi organised and dependently to carry them to and from the tourist spots. The ticket cost 3rd class Rs. 260/-, the bus 700/-. The train was full, both upward and return.

Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Sri Lanka Navy assisting in rescue operations (Pic courtesy SL Navy)

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

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UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

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300 of 100,000 trees in Colombo considered high risk: state minister

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)

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