PLANS FOR a comprehensive revival of Sri Lanka’s rail network were announced by Prime Minister Ranil Wickremesignhe on August 11. Consultants are to be appointed to look at improving the management structure, whilst Indian engineers will start on urgent repairs, he said. The Prime Minister also hopes to see services restored to the northern city of Jaffna, which was one of Sri Lanka Railways’ most profitable routes before being severed by the long-running civil war. ’The government cannot leave this route unserviced any more’, he insisted.
Overseeing the revival programme will be a new Sri Lanka Railways Authority, which was officially vested on July 23 using legislation approved by Parliament in 1993 (RG 6.93 p358). SLRA will assume ownership of all fixed assets and rolling stock, and some staff will also transfer. According to Transport Minister Tilak Marapana, the authority will be responsible for policy and planning, with SLR continuing to run the railway as ’an implementing body’.
The seven-strong authority board will be headed by the present SLR Chairman P H Manatunga, with representatives from the Treasury and Transport Ministry. SLRA will appoint a new Managing Director for SLR to succeed the present General Manager.
Marapana said the principal objective of the restructuring is to strengthen the railway’s management and reduce the losses currently running at Rs2bn a year. There will be no compulsory redundancies among the 17000 staff, but those with more than 10 years’ service will be offered early retirement. Funding for the improvement programme will come from sale of redundant railway assets, including scrap, disused rolling stock and surplus land. The minister said it was ’too early’ to consider privatising the rail network.
