• Hit by stalled mega projects, underutilised alternatives, inadequate maintenance, and rise in private vehicle ownership

Transport development in Sri Lanka has long been a central component of national economic strategy, intended to facilitate mobility, enhance regional connectivity, and support growth across sectors.

Historically, the country’s transport policy has heavily emphasised road infrastructure, with over 119,000 km of roads forming the backbone of national mobility. Roads carry approximately 95% of passengers and 97% of freight, highlighting the country’s dependence on road transport.

However, despite this extensive network, Sri Lanka faces a growing transport crisis characterised by stalled megaprojects, underutilised alternatives, inadequate maintenance, and an explosive rise in private vehicle ownership.

The cumulative effect is widespread congestion, inefficiency, and a severe erosion of the nation’s transport sustainability.

Policy inconsistency

One of the most glaring setbacks has been the cancellation of the Malabe-Fort Light Rail Transit (LRT) project. Funded through a highly concessional loan by the Japan International Cooperation Agency (JICA), the LRT was conceived as a 15.7 km elevated rail system running from Colombo Fort to Malabe via Battaramulla, intended to significantly reduce travel times and relieve congestion along a key urban corridor.

Designed as a high-capacity, rapid transit solution with 16 stations and modern signalling systems, it promised to offer an efficient alternative to private vehicles, reducing the number of cars and motorcycles on Colombo’s roads.

Despite years of preparatory work, including mobilisation of consultants and detailed design studies, the project was abruptly cancelled by the Government. This decision eliminated the country’s most ambitious attempt at developing a modern urban rail system, leaving the capital without an effective mass transit solution.

University of Colombo Department of Economics Professor Lalithasiri Gunaruwan noted that modernisation must start with key policy changes, especially making private vehicles pay for the roads they use. “Railways fund their tracks, signals, and stations, while private vehicles enjoy free road space,” he said.

He warned against costly upgrades without economic planning, noting that Sri Lanka must live within its means. “It’s like someone who can barely afford slippers suddenly wanting gold-plated shoes,” he said.

Prof. Gunaruwan also criticised decades of policy neglect. Despite repeated calls, Sri Lanka has never implemented a true public transport priority policy. He highlighted fuel pricing, where diesel — once cheaper to support buses and trains — was now almost as expensive as petrol, undermining public transport competitiveness.

In order to fix the system, he recommended expanding capacity to reduce overcrowding, improving service quality to attract middle-class commuters, and introducing fair charges for private vehicles, citing Singapore’s model. He also urged that expressway tolls be used to strengthen public transport, not subsidise cars.

“Public transport continues to be overlooked in both policy and practice,” he said, calling for urgent action to create an efficient, sustainable system.

Over-reliance on foreign loans

Simultaneously, the Central Expressway Project (CEP), envisioned as a flagship initiative linking Colombo to the central provinces, has languished in limbo. Initiated nearly a decade ago, the CEP was meant to decongest national highways, improve travel efficiency, and stimulate regional development. However, financial, governance, and operational challenges have prevented its completion.

Section I, connecting Kadawatha to Mirigama, has reached only 36% completion, while subsequent sections remain indefinitely suspended. The project’s original financing relied on a  $ 989 million loan from China’s Export-Import Bank, of which only 5% was ever disbursed due to Sri Lanka’s 2022 sovereign default. 

Even with partial resumption of lending in renminbi, the Government faces a shortfall exceeding $ 400 million, forcing consideration of fresh borrowing amidst International Monetary Fund (IMF)-imposed fiscal constraints. The financial burden of the project has escalated sharply; the cost of Section I has increased from Rs. 158 billion at inception to an anticipated Rs. 450 billion by 2026 — a 184% rise — driven by currency depreciation, procurement irregularities, and contract delays.

The National Audit Office (NAO) has identified instances of major contracts awarded as unsolicited proposals at rates 23–28% above engineer estimates, with mobilisation advances and unpaid contractor claims further compounding the fiscal strain.

The CEP exemplifies the consequences of over-reliance on foreign loans, weak governance, and policy paralysis, leaving Sri Lanka’s high-mobility expressway network incomplete.

The combined effect of the LRT cancellation and CEP suspension is reflected in daily urban congestion. Colombo’s roads are heavily dominated by private vehicles, particularly luxury cars, motorcycles, and three-wheelers, which constitute nearly 89% of incoming traffic at city entry points. Buses, despite their capacity to carry far more passengers, account for only 2.4% of traffic.

Traffic congestion

Peak-hour congestion is intensified as high-end electric and petrol vehicles, often with only one or two occupants, occupy significant road space. This inefficient utilisation not only increases travel times but also elevates fuel consumption, emissions, and public frustration. Transport infrastructure, originally intended to facilitate movement and productivity, has become a bottleneck, straining both social and economic systems.

The sharp rise in private vehicle ownership has further exacerbated these challenges. Between 2014 and 2019, Sri Lanka’s active vehicle fleet grew by 49%, from 3.75 million to 5.6 million, with motorcycles alone making up 54%. Approximately 85% of vehicles are privately owned, reflecting a trend away from public transport use.

This surge in vehicles stems in part from declining reliability of public transport services and inadequate investment in alternatives such as urban rail and bus rapid transit. The result is a self-reinforcing cycle: inadequate public transport pushes commuters towards private vehicles, which in turn worsens congestion, further degrading the efficiency of any remaining bus or transport services. 

Without substantial policy intervention, including investment in high-capacity public transport, dedicated bus lanes, and pedestrian-friendly urban design, the country risks entrenching a car-dependent culture that undermines mobility and sustainability.

Road maintenance

Road maintenance presents an additional layer of challenge. While the country’s road network is extensive, many trunk and secondary roads are approaching or have exceeded capacity limits, particularly as vehicle speeds and weights increase. Maintenance backlogs are significant, with insufficient budgets and weak enforcement mechanisms allowing pavement deterioration, potholes, and unsafe conditions to proliferate.

The failure to maintain roads compounds congestion, increases vehicle operating costs, and heightens accident risks. Moreover, infrastructure neglect discourages investor confidence, as poor road conditions directly impact logistics efficiency, supply chains, and the cost of doing business. For a country seeking to attract foreign investment, infrastructure reliability is critical; the absence of proper maintenance sends a negative signal to potential investors regarding governance and operational risk.

Investor participation in transport infrastructure has been limited, reflecting broader economic and political uncertainty. Megaproject cancellations, financing irregularities, and macroeconomic instability have undermined confidence in public-private partnerships and foreign-funded initiatives.

The LRT cancellation, the CEP’s stalled progress, and the indefinite suspension of expressways like Ruwanpura and the Elevated Highway illustrate the unpredictability faced by investors. Without a transparent, stable, and coherent policy framework, the country struggles to mobilise capital for transformative infrastructure projects. The lack of new investment further perpetuates the reliance on private vehicles, as there is no viable alternative to crowded and deteriorating roads.

Inefficient utilisation

Compounding these operational and financial challenges is a mismatch between road capacity and user behaviour. Roads, originally designed to accommodate mixed traffic efficiently, are increasingly dominated by luxury and high-speed vehicles carrying minimal passengers.

Peak-hour congestion is thus not merely a function of vehicle numbers but of inefficient utilisation of limited road space. High-value private vehicles exacerbate wear and tear, increase accident severity, and create a sense of inequity, as those who rely on buses and motorcycles are subjected to longer travel times and reduced safety. The resulting congestion is both a social and economic cost, diminishing productivity and quality of life.

In response to inquiries from The Sunday Morning, Road Development Authority Chairman T. Paskaran stated that the authority was continuing to follow the existing Master Plan, which had been prepared in 2019 and covered the period from 2020–2030. He further said that he was unaware of any policy changes, as such matters were overseen by the Ministry of Transport. 

However, attempts to reach Transport Minister Bimal Rathnayake and Ministry Secretary Prof. Kapila Perera for comment were unsuccessful.