Sri Lanka Railways is once again in the national spotlight, this time amid a sudden shake-up at its highest level.
Former General Manager Dhammika Jayasundara was removed by Cabinet decision, with Ravindra Pathmapriya stepping into the role the very next day.
Yet, while the headlines focus on this dramatic leadership switch, the deeper, more unsettling question lingers: can an institution mired in chronic inefficiency, mismanagement, and staggering losses ever realistically transform into a loss-free operation, no matter who is at the helm?
Chronic financial losses
For years, Sri Lanka Railways has struggled with mounting losses, inefficiency, and mismanagement.
The Committee on Public Accounts (COPA), formerly chaired by MP Aravinda Senarath, recently highlighted the severity of the department’s financial woes.
During a parliamentary session held on 5 June to review the Auditor General’s Report for 2023, the committee noted alarming daily losses due to train cancellations.
The department had been summoned earlier on 8 May, along with former General Managers and former Secretaries to the Ministry of Transport, to explain lapses in oversight and operational management.
One key issue raised was the insufficient frequency of audit and management committee meetings from 2021-2024.
Former officials attributed the irregularity to the Covid-19 pandemic, although arrangements were made to resume these meetings in 2024. Yet even then, scheduled meetings were disrupted due to staff transfers, resulting in decreased institutional efficiency.
The consequences were evident: train delays increased significantly, with 64 delays recorded in 2022, 61 in 2023, and 46 in 2024.
However, COPA recommended detailed reporting on daily train delays and the implementation of measures to prevent further disruptions, alongside audits of the financial losses stemming from cancellations.
Underutilisation
In addition to COPA’s revelations, the latest available audit report on Sri Lanka Railways issued by the National Audit Office (NAO) has revealed the severity of operational weaknesses, mismanagement, and corruption at the department.
The audit report has highlighted that of 122,426 scheduled train runs in 2023, only 36,771 operated on time, while 10,531 trains were cancelled – meaning 70% of trains failed to meet the timetable. Passenger trains had fared no better, with only 32% running on schedule.
Despite the railway’s longstanding contribution of 6% to both national passenger traffic and freight transport, these figures reflect stagnation.
Interestingly, in Anuradhapura, 23 out of 69 rooms across five two-storey field houses remained vacant for periods ranging from two months to over 15 years. Similarly, six of 56 bungalows and 31 of 189 paired houses were left unoccupied for months to over a decade. Many of these structures are now in a dilapidated state, repaired only after allocations are made to residents.
Underutilisation extends to operational assets as well. At the Jaffna Railway Station, two small office rooms measuring just over seven feet in each dimension have been underused, one even leased free of charge to a telephone company. Romanian train coaches have sat idle at the station for over two years, while 69 wagons and coaches across four stations are decaying due to neglect.
The audit has recommended that repairable units be refurbished for service while unusable units should be repurposed.
Moreover, telecommunication infrastructure installed at stations like Kurunegala and Polgahawela remains largely underutilised, serving internal calls only.
In addition, even Government housing associated with railway stations – 132 units across five locations – remains vacant, with many lacking basic facilities such as water and electricity.
Leased land and revenue losses
The audit has further uncovered serious lapses in land-leasing practices, with prolonged delays resulting in uncollected revenue.
In Mirigama in the Gampaha District, lease agreements dating back to between 1976 and 2010 have not been updated for over 12 years. Similar delays were seen in Nawalapitiya, Oddamavadi, and Ragama, where lease requests took 1-7 years for consideration.
In Polonnaruwa, 2.5 perches of railway reserve land has remained unleased for four decades, only now moving towards formalisation. In Getambe in the Kandy District, approval for a temporary motor vehicle repair station on 26 perches has taken nearly five years, with lease rent of Rs. 527,994 still uncollected at the time of audit.
Even high-profile leases, such as those with the Ceylon Petroleum Corporation for oil filling stations in Peliyagoda, Matale, Mirigama, and Wattegama, were found to be decades overdue, ranging from 42-75 years.
Auditors have stressed the urgent need for timely processing, updated lease agreements, and regular rent collection to prevent further revenue losses.
Safety and operational challenges
Operational management weaknesses have further compounded the Railway Department’s woes.
At the Polonnaruwa Station, unauthorised construction within platform areas remains unaddressed.
Fuel storage tanks at the Batticaloa Running Shed, including a 45,000-litre tank, have remained unused for over a decade, causing operational disruptions.
Additionally, development initiatives such as the ‘Pibidemu Polonnaruwa’ programme reveal systemic inefficiency.
Land transferred to the Urban Development Authority (UDA) for a financial centre remains underutilised. A 442 sq ft meeting hall, planned over three-and-a-half years ago, is yet to be completed, while former buildings of the Agrarian Services Department have not been repaired or returned to the Railway Department.
As reliably learnt by The Sunday Morning, despite these failures, no enforcement actions have been taken.
Can the new administration deliver reform?
With the new appointment made to Sri Lanka Railways, the pressing question is whether the new administration can reverse decades of inefficiency, mismanagement, and underutilisation.
Responding to questions from The Sunday Morning, Railway Trade Unions Alliance Co-Convenor S.P. Withanage emphasised the urgent need to address longstanding issues within Sri Lanka Railways, including those concerning staff shortages, rail tracks, signal systems, quality spare parts, and the renovation and addition of compartments and locomotives.
“The department is going to absorb over 1,000 new employees to fill up existing shortages within it. In addition, while focusing on taking action against previous corruption and inefficiencies, we insist on enhancing the existing efficiencies to make the Railways Department a profitable institution in the near future,” Withanage stressed.
“There are a number of issues in the department and we need to fix those immediately to make this a profitable institution,” he added.
Highlighting concerns with the e-ticketing system, Withanage further noted: “The system should be immediately re-assessed and actions should be taken to rectify issues and to stop ongoing corruption.”