- Govt. yet to formally seek Japanese assistance to recommence project
With the economy gradually stabilising, the streets of Colombo are returning to the congestion they were known for. The traffic in the capital shows little sign of slowing. Despite efforts by the Government to address the issue with traffic regulation, congestion occurs for commuters and pedestrians alike.
Heavy traffic during rush hour, especially on rainy days, has become a familiar ordeal for Colombo’s residents. Luxury SUVs carrying only one or two passengers often make the journey from Malabe or Athurugiriya to central Colombo, weaving through streams of large buses and three-wheelers that fill every available gap on the roads.
A journey that normally takes around 20 minutes from Battaramulla to the heart of the city can easily stretch to an hour or more during peak hours. Most roads, from main arteries to sub-roads, are densely packed from 7–9 a.m. and again from 4–7 p.m. This congestion not only wastes valuable time but also adds to environmental pollution and escalates national fuel costs.
Official communications yet to commence
Over the years, several solutions have been proposed to tackle Colombo’s chronic traffic woes, but progress has been slow. One of the most talked-about initiatives is the Japan-funded Light Rail Transit (LRT) project.
First announced with much fanfare between 2015 and 2019, the project moved forward with the signing of an agreement between the Sri Lankan Government and the Japan International Cooperation Agency (JICA), a Japanese donor agency. However, when a new Government assumed power in 2019, the project was abruptly shelved.
Recently, the LRT project resurfaced in public discourse following renewed interest from the current administration. Yet, as reliably learnt by The Sunday Morning, little concrete progress has been made. The project remains stalled, largely due to the Government’s hesitation to make a decisive policy call on whether it should proceed.
Official communications between Sri Lanka and Japan have yet to commence regarding the potential re-activation of the controversial Colombo LRT project, The Sunday Morning learns.
The Sunday Morning learns that despite Japan showing interest in re-launching the project, no formal proposal or written communication of interest has been forwarded to the Sri Lankan Government to date.
Wasted potential
The LRT project, originally planned as a 15.7 km elevated railway with 16 stations running from Colombo Fort to Malabe via Battaramulla, includes plans for a train depot, the procurement of LRT trains, and the installation of electrical, communication, and signalling systems. The project was expected to reduce travel time between Colombo Fort and Malabe to approximately 30 minutes.
A loan agreement for the project was signed between Sri Lanka and Japan in 2019, with Japan extending around Rs. 48 billion on highly concessional terms, including a 40-year repayment period with a 12-year grace period, 0.1% annual interest for civil works and equipment, and 0.01% for engineering services.
The preliminary base cost estimated during feasibility studies was $ 1,374 million, which, accounting for price escalation, contingencies, and interest, brought the total loan estimate to $ 1,850 million.
However, the project faced setbacks. According to the Auditor General’s Department, the Cabinet of Ministers decided to terminate the project on 6 October 2020, citing concerns, including higher project costs. The project continued only until the end of January 2021.
The National Audit Office reported that by the end of 2019, a total of Rs. 2,364 million had been spent – Rs. 1,791 million from JICA funds and Rs. 573 million from Treasury provisions – on land acquisition, environmental activities, legal and institutional frameworks, project management, and planning. With the project’s termination, these expenditures are considered unproductive.
The Colombo LRT project was intended as a major initiative aimed at addressing chronic traffic congestion in the Colombo Metropolitan Region and improving urban mobility in the Western Province. Designed under the Western Region Megapolis Transport Master Plan, it promised a fast, reliable, and environmentally friendly alternative to Colombo’s congested road network.
The system envisions integration with other modes of public transport, connecting central Colombo with suburbs and satellite towns, including Kelaniya, Fort, Kollupitiya, Borella, Maradana, Battaramulla, Kottawa, Malabe, and Kaduwela.
LRT project’s future
While financing through JICA’s official development assistance brings both funds and technical expertise, the future of the project remains uncertain as the Government and its Japanese counterpart have yet to engage in official discussions regarding its revival.
When contacted, External Resources Department (ERD) Director General Samantha Bandara confirmed that although discussions with Japan had taken place, no official decision had been taken from Sri Lanka’s side regarding the project’s future. He also clarified that there were no constraints preventing Sri Lanka from securing such funding over the next four years, noting that previous obstacles had now been cleared.
Meanwhile, Treasury Deputy Secretary A.K. Seneviratne noted that no bilateral funding proposals had been received so far, with all current funding negotiations being conducted with multilateral agencies. “We have no restrictions; we are willing to obtain loans from those who are willing to provide them,” he stated.
Meanwhile, Ministry of Transport Planning Division Acting Director General W.A.D.K. Withana said that the project had been on hold for several years and had not been re-activated. A senior official within the ministry, speaking on condition of anonymity, revealed that there were currently no discussions underway regarding urban transport planning.