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Sunday December 10th, 2023

Light Rail Project: Maharagama to be linked to the network

Artists rendition of the cancelled Japanese funded project

ECONOMYNEXT- Prime Minister Mahinda Rajapaksa has asked the Urban Development Authority (UDA) include the city of Maharagama in the proposed Kottawa-Hunupitiya Railway project.

The Prime Minister made the request at a meeting held yesterday at the Finance Ministry with the UDA officials on the first phase of the proposed railway project aimed at reducing traffic congestion in the city of Colombo and surrounding urban areas.

Accordingly, the Prime Minister said that the inclusion of Maharagama, one of the most populous cities, in the Greater Colombo area would be more beneficial.

He also said that a large number of people from the outstations come to the Maharagama area and said that the project will also alleviate the severe traffic congestion in the city.

Pointing out that development should be done for the benefit of the people, Prime Minister Rajapaksa said that the country does not need development projects that do not meet the requirement of the people.

Under the first phase of the project, three railway lines have been identified for construction covering Colombo and suburbs as Red, Green and Blue Lines.

It is proposed to construct the Red Line from Ragama to Kirulapone via Colombo Fort, the Green Line to Kelaniya via Moratuwa, Piliyandala, Narahenpita and the Blue Line to Hunupitiya via Kottawa, Pannipitiya and Thalawathugoda.

UDA officials told the Prime Minister that the city of Maharagama could be included in the 21.5 km Kottawa-Hunupitiya railway line.

The daily economic loss to Sri Lanka due to traffic congestion in 2019 is estimated at Rs. 1000 million. As a solution to this, the city bus project which was recently launched by the present government is now being implemented successfully.

The aim of this project is to connect the people who come to Colombo in their private vehicles to the railway system through the bus project.

The project, to be implemented as a Public-Private Partnership is expected to be completed in four years and needs USD 5 billion in foreign direct investment.

When the current government came to power two years ago, a feasibility study for a Light Rail system financed by a soft-loan from the government of Japan had been carried out and work on the project had begun.

President Gotabaya Rajapaksa canceled the project without a clear explanation as to why with the former General Manager Railways Prof Lalithasiri Gunaruwan stating that no freight could be carried on the light railway and “too many buildings would have to be demolished,” as part of the reasoning for the cancellation.

The new Light Rail project also cannot carry freight.

Urban Light Railways are the best modern way of moving commuters around thickly populated regions. India has recently eased congestion in Mumbai, New Delhi and even smaller cities such as Cochin by building these networks.

The current UDA project seeks to restart the project through private financing.

A 6 per cent government contribution is also proposed to be provided for this project. This railway project alone is expected to save around Rs 550 million daily.

The Prime Minister advised that in inviting foreign investors to the project, all their requests should be carefully considered and that the responsibility lies with the authorities of the Urban Development Authority. (Colombo/March04/2021)

Reported by Imesh Ranasinghe

Comments (4)

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  1. sacre blieu says:

    Wow, what a dream. That it will be mainly, a private project, and with a modest, although the amount in rupee terms is huge, contribution by the government, it should be made clear that there would be an equitable spending discipline when the project gets going, and not end up as another fiasco, with the public made to pay the huge losses.

    1. Athula says:

      It is pretty pathetic to see that this prominent news agency has mentioned some wrong facts regarding some statements, stated by Prof.Lalithasiri which he had spoken his factual opinion about the KV project, unacceptably mistaken for the LRT project, which he had never spoken about.

      1. Shan says:

        Still his opinions were pathetic and stupid. no need of defending an idiot

  2. Li says:

    Light rails are NOT supposed to carry freight, ever!! Only commuters. WTH was this Lalithasiri person thinking? They should have asked a Transportation expert at Mora, instead of this deadbeat Econ professor

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Comments (4)

Cancel reply

Your email address will not be published. Required fields are marked *

  1. sacre blieu says:

    Wow, what a dream. That it will be mainly, a private project, and with a modest, although the amount in rupee terms is huge, contribution by the government, it should be made clear that there would be an equitable spending discipline when the project gets going, and not end up as another fiasco, with the public made to pay the huge losses.

    1. Athula says:

      It is pretty pathetic to see that this prominent news agency has mentioned some wrong facts regarding some statements, stated by Prof.Lalithasiri which he had spoken his factual opinion about the KV project, unacceptably mistaken for the LRT project, which he had never spoken about.

      1. Shan says:

        Still his opinions were pathetic and stupid. no need of defending an idiot

  2. Li says:

    Light rails are NOT supposed to carry freight, ever!! Only commuters. WTH was this Lalithasiri person thinking? They should have asked a Transportation expert at Mora, instead of this deadbeat Econ professor

ADB USD200mn loan for Sri Lanka economic stabilization efforts

ECONOMYNEXT – The Asian Development Bank (ADB) has approved a US 200 million dollar concessional loan to Sri Lanka to help stabilize the country’s finance sector.

The Financial Sector Stability and Reforms Program comprises two subprograms of IS 200 million dollars each, according to a statement by the ADB.

“The program’s overarching development objective is fully aligned with the country’s strategy of maintaining finance sector stability, while ensuring that banks are well-positioned for eventual recovery,” ADB Country Director for Sri Lanka Takafumi Kadono was quoted as saying in the statement.

“The expected development outcome is a stable financial system providing access to affordable finance for businesses in various sectors of the economy.”

The ADB statement continues:

“Subprogram 1 targets short-term stabilization and crisis management measures that were implemented in 2023, while subprogram 2 is planned to be implemented in 2024 and focuses on structural reforms and long-term actions to restore growth in the banking sector.

The program will help strengthen the stability and governance of the country’s banking sector; improve the banking sector’s asset quality; and deepen sustainable and inclusive finance, particularly for women-led micro, small, and medium-sized enterprises.

According to the International Monetary Fund’s (IMF) latest review, Sri Lanka’s economy is showing tentative signs of stabilization, although a full economic recovery is not yet assured.

The program is a follow-on assistance from ADB’s crisis response under the special policy-based loan that was approved for Sri Lanka in May 2023.

It is aligned with the fourth pillar of the IMF’s Extended Fund Facility provided to Sri Lanka to help the country regain financial stability.

It is also in line with the government’s reform agenda, including strengthening the operational independence of the Central Bank of Sri Lanka (CBSL) and its designation as the country’s macroprudential authority.

In designing this subprogram 1 loan, ADB has maintained close coordination and collaboration with the IMF to design targeted regulatory reforms for the banking sector—including the asset quality review—and with the World Bank on strengthening the deposit insurance scheme.

“The loan is accompanied by a $1 million grant from ADB’s Technical Assistance Special Fund to provide advisory, knowledge, and institutional capacity building for Sri Lanka’s Ministry of Finance and CBSL.”
(Colombo/Dec9/2023)

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Sri Lank in blackout as power grid hit by cascading failure

ECONOMYNEXT – Sri Lanka suffered a blackout as Saturday evening as the state-run Ceylon Electricity Board grid was hit by a cascading power failure.

The cascading failure is believed to have been triggered by the failure of the Kothmale-Biyagama transmission line.

“The Ceylon Electricity Board wishes to inform our customers that due to the failure of Kotmale – Biyagama main transmission line, an island wide power failure has occurred,” CEB Spokesman Noel Priyantha said.

“Step by step restorations are underway and it may take few hours to completely restore the power supply.”

With hydro plants running flat out, a outage of the line tends to create a big imbalance in the demand and supply, leading to tripping of more lines and generators.

Lines can trip due to lightening strikes, or equipment failures.

Sri Lanka last suffered a cascading failure in December 2021, due to the failure of the same transmission line.

RelatedSri Lanka power blackout as grid hit by cascading failure

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Sri Lanka to host regional Food and Agriculture Organization conference

ECONOMYNEXT – Sri Lanka will host the 37th session of the Asia Pacific Regional Conference (APRC) of the United Nations Food and Agriculture Organization (FAO), from February 19-22, 2024 in Colombo.

The Conference will bring together agriculture ministers and officials from 46 countries across the region to discuss challenges in food and agriculture.

“The 37th APRC will provide a vital platform for regional collaboration, benefitting the agricultural landscape, fisheries sector and environment of Sri Lanka,” Minister Mahinda Amaraweera said at a press briefing on Friday (8) to announce the conference.

FAO has had an active presence in Sri Lanka for over 40 years. “FAO has supported the country in the implementation of Good Agricultural Practices (GAP), and the development of the fisheries sector for growth and climate resilience,” Vimlendra Sharan, FAO Representative for Sri Lanka and the Maldives said.

“The APRC conference will be an opportunity to highlight the innovative approaches introduced in partnership with the government.”

By hosting APRC, Sri Lanka hopes to demonstrate the country’s dedication to the growth of sustainable agriculture, and showcase its commitment to sustainable agricultural development.

The APRC agenda will include a forum on agritourism, especially requested by the Sri Lankan government.
(Colombo/Dec9/2023)

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