Railway Dept. to be made a corporation- Minister

• Currently run at annual loss of Rs.10 billion
• Some rails were as old as 50 years, and they should be replaced immediately

By Kelum Bandara  

The government has initiated discussions for the conversion of the Department of Railways to a public corporation as part of the process of reforming the state owned enterprises (SOEs), a minister said yesterday.  

A public corporation or a statutory corporation is operated on a commercial basis and governed by a chairman and director board. A department does not possess commercial qualities as such and is directly controlled by the government. 

Reforming the SOEs has been prescribed by the International Monetary Fund (IMF) to qualify for financial assistance to tide over the current economic crisis.   

Transport and Highways Minister Bandula Gunawardane told Daily Mirror that the Department of Railways had been run at an annual loss of Rs.10 billion during the recent past years, and its commercial viability should be improved to make it more passenger friendly.  

“In 2021, the Department generated revenue of Rs.2.6 billion. However, Rs.2.3 billion had been spent for the payment of overtime work by the employees, and Rs. 2.7 billion for salaries,” the Minister said.   
The Minister said he held talks with the rail trade unions representing engine drivers, station masters and guards, and got their positive responses to the proposed restructuring plan.  

Sri Lanka has a rail network of around 1,500 kilometres. However, the Minister said some rails were as old as 50 years, and they should be replaced immediately.   

“We have placed orders for the import of 10,000 rails. The rails of the coastal line have to be replaced every five years. But it has not been done for the last ten or more years. Therefore, trains cannot speed up to Panadura on the southern coastal line. The speed limit has been restricted to 20 kilometres per hour,” he said.

• Rails of the coastal line have to be replaced every five years, but it has not been done for the last ten or more years