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Sri Lanka tax payers spend Rs204bn on rail over 5-years; Rs31bn in losses

Sep 21, 2016 13:52 PM GMT+0530 | 3 Comment(s)

ECONOMYNEXT - Sri Lanka has spent Rs204 billion on a state-run rail system, and run losses of Rs30.4 billion, before accounting for any depreciation for capital expenditure, with season ticket holders in particular contributing little, official data show.

In 2014, Sri Lanka pumped Rs53.3 billion to the Department of Railways, including Rs36.4 billion in capital expenditure and ran an operating loss of Rs11.0 billion.

In 2015, tax payers pumped in Rs44.4 billion and the rail network lost Rs7.7 billion without taking any depreciation into account, despite diesel prices coming down.

Sri Lanka railways only earned Rs6.3 billion in passenger and freight revenues in 2015, up from Rs5,909 billion a year earlier.

Out of Rs5,174 million of passenger revenue, season ticket holders paid only Rs1,010 million or quarter of the revenue, despite accounting for 66.6 million or exactly half the rides.

A full three quarters of the revenue, or Rs4.1 billion, came from regular ticket holders, who also took 66.6 million rides.

In 2015, a salary hike pushed salaries and wages spending to Rs8.1 billion, up from Rs6.2 billion.

Workers also increased from 16,893 to 17,634.

But the railway department said there was not enough skilled workers. (Colombo/Sept21/2016)


 

3 Comments

  1. sacre blieu September 26, 02:11 AM

    There appears to be, in addition to wastage and corruption, a good amount of travellers without tickets,and nobody seem a care a damn. With such an attractive network of railways, the authorities should have been now converted this into a most attractive mode of travelling , specially to attract the tourists too.

  2. Bandara September 22, 11:09 AM

    This is nothing for the people in Sri Lanka. Because they pluck money from the trees in their backyard as and when they needed to pay for inefficient and loss making SE

  3. Nana September 22, 09:24 AM

    Railway easily could be made a profit generating enterprise by privatising or PPP and more benefits for passengers probably for a small increase in fares. But as Sri Lanka is a Donkey Republic it is not allowed to happen and poor Tax payers have to pay for some people to enjoy Free and cheap transport and some others to enjoy Relax Jobs and few to make corruption. Tax paying Public can goto courts over these. Specially charges for Public sector Season tickets is 1/3 of normal which is a clear discrimination.Somebody to goto courts soon.

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