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アー?参
ublication

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DARY OF
August
1. At the launching ceremony of the report titled 'Humanitarian Operation Factual Analysis July 2006-May 2009 at the Hilton Hotel, Colombo, the Defence Secretary Gotabhaya Rajapaksa said that the falsehood created by the LTTE's international propaganda machinery together with some in the Tamil Diaspora will be laid to rest with the publication of the report enabling the world to conclude beyond any doubt that the humanitarian operation was just.
2" The Prime Minister of India, Dr. Manmohan Singh, told MDMK (Marumalarchi Dravida Munnetra Kazhagam) leader Vaiko that India cannot afford to restrict economic ties with Sri Lanka as demanded by Tamil Nadu's political parties to apply pressure to mitigate the sufferings of Sri Lankan Tamils.
8th Standard and Poor's credit ratings agency said that new global financial crisis would hit Asia harder than the last one (2008-2009 global financial crisis), especially nations heavily exposed to offshore markets or still repairing their budgets from the 2008-2009 crisis.
The first solar power plant established in Baruthakanda, Hambanthota in Sri Lanka, was opened.
11*h The President Mahinda Rajapaksa, on a four-day official visit in China, opened the newly-built Sri Lanka Academic Centre at the University of Foreign Studies in Beijing. The University conferred an Honorary Doctorate, on the President.
At a bilateral meeting held with the President Mahinda Rajapaksa, Chinese Prime Minister Wen Jiabao stated that China is committed to strengthen friendship with Sri Lanka and will extend its fullest support in all necessary situations to Sri Lanka at the international level.
12. The United States warned Sri Lanka of a possible international enquiry if adequate steps were not taken for a credible probe into charges of alleged humanitarian crimes during the LTTE war.
The Presidential Press Service of Russia said that the Russian President Dimitry Meadvedev signed a decree backing the UN Security Council resolution that authorised international military action in Libya.
13. The World Bank Chief, Robert Zoellick, warned of a “new and more dangerous" time in the global economy, as Europe struggles to resolve its debt crisis.
16' Sri Lanka announced that it had clinched its largest ever single foreign investment deal by signing a $ 500 million contract with a Chinese-led consortium to build a new container terminal.
18. The Sri Lanka government granted a US$ 10 million credit facility to the Republic of Maldives expecting the Maldives import food supplies, especially fruits and vegetables from Sri Lanka.
22*** The Libyan rebel chief, Mustafa Abdel Jalil, hailed the end of the four-decade Kadhafi era after his fighters took control of most of Tripoli.
23** Rebel fighters captured Moamer Kadhafi’s heavily-defended Babal-Aziziya compound and headquarters in Tripoli after a day of heavy fighting.
24. The Hurricane "Irene pounded the Bahamas with sustained winds of 120 miles (195 kilometres) per hour and churned up heavy seas as it barrelled on a path toward the populous US east coast.
25th The President Mahinda Rajapaksa stated in parliament that there was no longer a need to impose emergency regulations within
the country proposing that the parliament remove the emergency laws.
29' The President Mahinda Rajapaksa was honoured with the title "Voharapathi” by the Law College, Colombo, to mark the Law College's 137th anniversary at a ceremony held at its premises.
September
3. The Arab League and three international organisations approved
plans for supporting the Palestinian's request for full membership in the United Nations.
4. The Russia's Foreign Minister, Sergei Lavrov, said that the BRICS (Brazil, Russia, India, China and South Africa) group of emerging powers is determined not to allow a Libyan-style of solution to the crisis in Syria.
7. The Global Competitiveness Report (2011-2012) issued by the World Economic Forum (WEF) indicated a progressive increase in Sri Lanka's competitiveness index shifting from 62nd in 2010 to 52nd in 2011.

• EVENTS
10. The IMF (International Monetary Fund) said now it recognises the transitional government in Libya, paving the way for the fledgling administration to benefit from the IMF's financial help.
12. The Special Envoy of the President of Sri Lanka on Human Rights and leader of the Sri Lanka delegation to the United Nations Human Rights Council (UNHRC) Minister Mahinda Samarasinghe said at UNHRC council session in Geneva that Sri Lanka has been willing to accept justified criticism and helpful comment of constructive spirit.
13 Pakistan called on the world to speed up relief efforts after torrential rains exacerbated major floods, killing 270 people and making another 200,000 people homeless in the south of the country.
14" The US Assistant Secretary of State for South and Central Asia, Robert O' Blake, told the media at the end of his three-day visit to Sri Lanka that the US government commended Sri Lanka for the positive progress it had made on its recovery from a deeply-damaging and longstanding conflict. He also said that the deploying of Tamil Police in the Northern Sri Lanka is important.
Defence Experts of Sri Lanka claimed the Robert O' Blake's call to set up a "Tamil Police' in the North is viewed as an 'unwarranted interference’ in internal affairs of a sovereign State.
18 South Korean government ordered seven savings banks to suspend operations because of their poor financial condition due to heavy investment in risky property projects at home and abroad.
At least 66 people have been killed and hundreds people have been injured in the powerful earthquake of 6.8 magnitude (Richter Scale) that hit the Himalayan State, causing widespread damage to buildings and roads.
20th The President Mahinda Rajapaksa, when he attend the 66th UN General Assembly sessions in New York, explained Heads of State of
Slovenia, Kirghizstan and Nigeria, the progress achieved after the defeat of terrorism.
21" "Saving our planet, lifting people out of poverty, advancing economic growth are one and the same fight,” said the UN Secretary General Ban Ki-Moon, in his opening remarks at the 66th UN General Assembly session that opened in New York. He also emphasised the importance of a collective global effort to address this issue.
The President Mahinda Rajapaksa held bi-lateral talks with the Heads of State of Nepal, Colombia and Iran at the UN Headquarters in New York. During these talks, he apprised the State leaders of the progress achieved by the Sri Lankan Government in resettling IDPs (internallydisplaced persons), de-mining, reconstruction endeavours and the recently-held local authority elections in the northern and eastern provinces.
22"" The President Mahinda Rajapaksa, on the sidelines of the UN summit, briefed the Heads of State of Qatar, Uganda and Palestine about the progress achieved by Sri Lanka in the socio-economic fields following the total eradication of terrorism and the massive development programmes undertaken in the country.
Sri Lanka High Commission in Canberra stated that the Australian government and the Opposition voted together to defeat a motion moved in the Senate by Australian Greens Senator Lee Rhiannon (Senator for New South Wales) to suspend Sri Lanka from the commonwealth membership, calling for a full investigation into allegations of war crimes committed in the final months of the country's civil war.
23". The President Mahinda Rajapaksa, addressing the 66th sessions of the United Nations General Assembly in New York, said “whilst clash of ideas, opinions and values continue, we have clearly to recognise that dialogue, deliberation and consensus offer the only viable means for resolving differences. The might of powerful nations cannot prevail against justice and fair play”
The President Mahinda Rajapaksa and the Indian Prime Minister, Dr. Manmohan Singh, discussed issues of bilateral interest and matters of
importance at regional and international level at the UN premises in New York.
24°* The Sri Lanka President Mahinda Rajapaksa met the Secretary General of Commonwealth of Nations, Kamalesh Sharma and the Maldivian Vice President, Dr. Mohammed Waheed Hassen, at the UN Headquarters in New York and discussed issues of bilateral interest and regional matters.
25°* The President Mahinda Rajapaksa briefed the UN Secretary General at the UN Headquarters on the progress achieved since the end of the conflict in Sri Lanka including the massive infrastructure development in the North and the resettlement of the IDPs. The President also explained the measures taken by the government to expedite the reconciliation process including the continuing talks with the Tamil political parties.

Page 3
ECONOMIC
REVIEW
Published by
Research Department, People's Bank, Head Office, Sir Chittan palan A. Gardiner Mawatha, Colombo O2, Sri Lanka.
ADVISORYBOARD
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Director Research
People's Bank
CONSULTANTE DITOR
Dr. A. P. Keerthipaia
CO-ORDNATOR
HL. Henacanica Research Office
THE ECONOMICREVIEW is ede o promote knowledge and interest in the economy and economic development process by a many sided presentation of Views and reportage, facts Ecclesales.HE ECONOMIC REVIEW is a community service project of the People's Bank. Its contents however are the result of the editorial considerations only and do not necessarily reflect Bank Policies or the Official Viewpoint. Signed feature articles also are the persona views of the authors and do not represent the institutions to Which they are attached Similar contributions as. Vel aS Comment:S and Vie W points are welcome. THE ECONOMCREWEWis published bi-monthly and is available bol som subcription and on direct sale. E-mail:ecore VG2 peoples bank.k.
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W. Janaka Weerawarda
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Printed a
 
 
 
 

Nos. 5 & 6 Aug./Sept. 2011
C O N T E N T S
students' Page
32 Economic Development
Book Review
36 A Critical Appraisal of some Aspects
of inconne Tax
를
Special Report
and Transportation
O3 New Perspectives in Land Transport
Policy
09 Road Transportation and its Future
Developments in Sri Lanka
16 Traffic and Road Safety Management
a. 19 Reduction of Traffic Congestion in Colombo City by Improving Public Bus
Transport
24 Improvement of the Inland Freight
Transportation of Sri Lanka
28 Enhancing the Efficiency of the Sri
Lanka Railways and its Contribution to Transportation
Next issues:
Ayurweda Budget-2012
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Page 4
SOME HI
Transport sector contribution to GDP 4.
扈...
ஐண~ேலxஇலஐஇx wజ్ఞురాకిస్. ܀܀ ܘܪܬܹܐ
:
100
2004 2005 2006 2007 2008 2009 2010 Contribution in RS, Bn. x*x* Contribution as a % of GDP Source: Department of census and Statistics
O
Passengers (Million Persons) of Domestic Transport
3000
Railway OO minibus services E. S. L. T. B. 2500ಣ” ܓܓܓ___ܓ
རྗེ་ 2000 獸 1500 --- 影 墨 1000...
O
Source: Department of census and Statistics 250 New Registration of Motor vehicles
Motor C 200 oto Cycles
s" ... ب: ** ---- --- s Land vehicles(Tractors/Trailers) 2 100
Dual purpose vehicles MotoGMTricycle 50 محضير * rotor cars ஐக " " Lorries Buses ::::::4*****مسیلمہشنششن................................................................... سیسے 200, 2003 2004 "40
Source: Department of Motor Traffic
Growth Rate of New Registration of Motor vehicles
80 తకి 60 N 冕 °40 - گے۔ 茎
E 20 c
O
2003 2004 2005 2006, 2007 20
Source: Department of Motor Traffic
Number of passengers travelling in a Type of No. of Wehic Vehicles with with with
1 paSSenger 2 passengers 3 passengers
Cars 1047 (49.2%). 832 (39.1%) 183 (8.6%)
Vans 161 (31.6%) 156 (30.7%) 89 (17.5%)
Average No. of Passengers in a Car Average No. of Passengers in a Van
* Based on a study conducted by the Research Department of the Peo Handiya and Peliyagoda Flyover towards Colombo between 7.30 as
2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

HLIGHTS
SRI LANKA
inland Road Network
2004 2005 2006 2007 2008 2009 2010
Length of national (A & B)Roads Length of railway route
Source: Annual reports, Central Bank of Sri Lanka
Sri Lanka Railway 圭 6000 . . . . . 12000 - - - - - - - - - - - - ܝ - , . . . - ܝ ܢ - ܢ 를 50 10000 를 e இ.இ 800 חרחך חו 400 = 語 3000 ||一||- 6000 통 es 輯 雛 로 폴 " | --------------- 輯 雛 40 골 s, 1000 . . . ဒို့လား...wား ဒွိ ဒွိဿ 2000 2 2. 後 顯。皺.嫌 O P ܨ ܗܐ ] ܚF ܗܬ 1t 0 ܣܼܿ 영 영 용 용 영 용 용 ܣܛ
宗 宗。宗 宗 宗 宗 宗 宗 宗
the Operated Kilometers ('000) E. Passenger Kilometers (min) a Freight ton Kilometers (mn Source: Annual reports, Central Bank of Sri Lanka
Total Vehicle Population
Buses
: Dual purpose vehicles
orries
Land vehicles-Tractors
Motor cars & Trailers
iš Motor Tricycie 2500 DMortor Cycles.
2000
2006 2008 2009 Department of Motor Traffic
2005 2010
Source:
2004
Passenger cars per 100 population
2004 2005 2006 2007 2008 2009
Source: Department of census and Statistics
vehicle (Cars and Vans) - Colombo suburb
e
Total No. of
with Vehicles
with with
4 passengers
5 passengers
>5 passengers
60 (2.8%) 03 (0.1%) OO (0%) 2125 (100%)
44 (8.7%) 27 (5.3%) 31 (6.1%) 508 (100%)
1.65
2.06
le's Bank on vehicles that passed Dehiwala Flyover, Nugegoda Gamsaba
- 8.30 am on 23 & 24 August 2011.
Economic Review : Aug./Sept. 2011

Page 5
New Perspectives in II
Abstract
his paper discusses the
current status of the land
transport industry in Sri Lanka. It assesses the current and future demand for transport and discusses the linitations that are posed by current practices. The paper identifies five areas of policy-led change that are required to ensure that Sri Lanka responds in a timely marrier to the future cha llenges for increased mobility, particularly for increased motorisation uhich is caused by increasing tracones.
Status of the Industry
Sri Lanka has a long and checkered history of multi-modal land transport development made up of highways, railways, buses and freight transport networks. However, the performance of all of these networks is currently considered by most users as un satisfactory even though the demand for transport has been steadily increasing. The current transport activity estimated by the different modes is presented in Table 1.
At present, there is an estimated annual demand for nearly 100 billion passenger km to be carried by different nodes of motorised transport that provide an estimated 27.7 billion vehicle kms through a fleet of nearly 3 million road vehicles and around 150 power sets and railway engines. In
wheelers and tax 11 percent (Tab activity is most
the Colombo City with an estimatec entering the city
1 million passeng arrive by bus, wh carries another 1 u sing the mo transport. (Kunr Weerawardena, 2
Vehicle owners
Currently, motor in Sri Lanka is ar per 1,000 person as in Singapore Lanka around 1 notor vehicle fle two and three
used for publict around 24, representing les fleet, while all
vehicles includi
make up around Vehicle owner growing at l l pe in the last decat history. It is p Lanka will obser registration of wheelers with ar. wheeled vehicle increases, availa cars and the re. duties. With pe increase above
likely that the will see an eve motorisation in
this endeavour, road Table 1 Transport a transport accounts for 95 Ve percent of passenger Kr travel volume and 98 Bus percent of goods transport Railways
in the country. Private Vehicles (
Para-Transit A.
Buses carry 55 percent of
Goods/Land Vehicles
the passenger kms, while
Water Transport
para-transit, (made up of
chartered and non-route Total
2"
buses, hired vans, three
- Economic Review: Aug/Sept. 2011
* Estimate by the Author

and Transport Policy
is) carry another ble 1). Transport dominant within r and its environs 220,000 vehicles laily carrying over ers of which, 62% hereas the railway
Prof. Amal S. Kumarage!
Senior Professor Department of Transport and Logistics Management University of Moratuwa Sri Laznikaz
2% with only 26%
des of private
arage and capita 1Cones are expected to
2009) increase over USD 4,000 within the decade, most families would be
hip able to afford a private vehicle
vehicle ownership ound 150 vehicles s. This is the same , However, in Sri wo-thirds of the :et is made up of wheelers. Buses ransport make up OOO vehicles s than 1% of the forms of goods ng land vehicles 300,000 vehicles. ship has been ercent per annun le, the highest in ossible that Sri ve a slowdown in two and three increase in fours due to income ability of low-cost iuction of import r capita incomes USD 2000, it is next few decades n higher rate of Sri Lanka. As per
(Kumarage, 2010).
Раввenger transportation
Even though public transport has provided the backbone of passenger transport services over the last 50 years, continuing neglect by successive governments has led to its gradual deterioration and lack of modernisation. Passenger dissatisfaction is high, leading to an increase in motorisation made possible by rising incomes, especially in urban areas.
As shown in Figure 1 (Kumarage, 2010), the growth in passenger travel in Sri Lanka has kept steady pace with per capita incomes. This currently represents an average per capita mobility of nearly 5,000 passenger kms per annum and a vehicle use of 1,300 km per annum per person. According to international norms, this is around 3 times the personal mobility observed for other countries having a per capita incone of USD 2,000
ctivities and modal shares of Sri Lanka in 2011
hicle Passenger % Tonne kn | % h (min.) Km (mn.) (min.)
379 5 55,177 55 O 9 O 5,365 5 134.8 2 ,605 60 25,759 26 Ο 1,841 18 11,348 1 O 819 17 2,585 3 6,436 98
3 O O 32 O ',657 100 100,236 OO 6,603 100

Page 6
(Shaefer, 2008). As seen in Figure 1, this higher level of mobility has been observed for several decades starting with the rapid expansion of islandwide bus services by the nationalised Ceylon Transport Board (CTB) in the 1960s where mobility rates increased by 7 to 8 percent per annum even though there was no corresponding increase in incomes.
Road network
Sri Lanka has a reasonably wellconnected road network of over 100,000 kms that provides satisfactory accessibility. Road density per km is one of the highest in the region. Most of the national and provincial roads and the majority of urban roads making up around 30,000 km are paved. Nearly 30% of these roads have been rehabilitated or are in the process of being rehabilitated.
The national highway network consists of 11,919 km of roads and 4,200 bridges. As shown in Table 2 (Kumarage, 2010), the extent of road at lower levels of the network is even more impressive boasting over 80,000 km of rural roads in the country. However, the performance of the network in terms of speed and safety are not impressive, and in fact, may be termed unsatisfactory. According to the road condition data collected in 2008, only 33% of the national road network is in reasonably good condition. Majority of the balance roads are
Comparison
100,000 ovoo-oo
90,000.
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0.
n 岑 深 wrnod
Figure 一
condition or lack capacity or pr standards, thus un necessary dela In fact, about 9% the network roughness of mor which is con un satisfactory classified as ba With the national poor standard, th local authority there are no mea: are found to ha conditions. The expressways is to year. This will ado to the road netv provincial centres airport.
Railway transp
The full extern t network in Sri La when it had 1,54(
presently in unsatisfactory except for a few
Table 2 Historical dev National Provincial Acces 1st Cent. BC Road Network based on connectivity
connection between the different king 11th Century Coastal roads in the southwest after
1815 Commencement of Road Building by
1905 6,024
1959 7,034 1990 10,447 14,916 2, 2002 11,760 15,743 5, 2O092 11,919 16,000 5,
Source: Kumarage, 2010.
4.
 

fTotal Passenger kms Vs. per capita Income (1958-2007)
S
蜀※
s
di GDP per capita (USS) -Pax Kms Travelled
1,800
1,600
1,400
1,200 1000 800 600
400
200
rowth of passenger traffic in Sri Lanka 1958-2007
ing the required pper geometric
contributing to ys and accidents. of the length of nas a surface e than 10 m/km | sidered most and should be rely motorable. network in such e provincial and roads for which sured indicators,
aVe CVel VOSe
first of a set of be opened this id around 400 km vork Connecting
double tracking, line has been retracted and abandoned in several areas, reducing the line to 1,447 krm with 172 stations and 161 substations. It has around 150 locomotives and power sets in active service with around 550 passenger carriages and 900 freight wagons in operating condition and some track destroyed during the civil conflict are being restored (Ministry of Transport, 2011).
The railway requires engaging in the passenger and freight market it lost to road transport over the last several decades. With roadbased congestion imposing restrictions, the railway requires more market-oriented approaches as well as a strategy to develop its
the port and the markets, including access to ports
and airports as well as nulti-modal
t logistics centres and multi- modal
of the railway nika was in 1923 ) km. Since then, new links, and
passenger terminals inclusive of park and ride facilities to compete with improved road transport including the challenges that will be posed by the new expressway system.
elopment of road network
; Urban Access Rural
Total
of Anuradhapura to ports in the North and East and doms and places of worship mostly in the dry zone
migration of people
British
6,024 12,070 19, 104 791 66,054 94,208 2OO 77,800 110,503 3OO . 80,000 113,219
Economic Review: Aug/Sept. 2011 -

Page 7
Bus transport
There are an estimated 23,228 buses operating public transport services in Sri Lanka. Of these, 4,758 are government-owned Sri Lanka Transport Board (SLTB) buses while the balance is privately owned. Of the privatelyowned buses, 3,058 are issued inter-provincial permits by the National Transport Commission, while the others are issued permits for intra-provincial transport services by the relevant provincial authorities. The vast majority of private buses are owned by single bus operators who compete fiercely against each other on the route. Even though they are regulated, standards are poorly observed and quality of carriage has not materialised, even though there has been a high demand for investment in buses. There is no management structure for private buses, and hence, it operates mostly as an informal SεCίOI.
The SLTB is the fully governmentowned bus operator and one time monopoly operator, whose market share has now reduced to 27%. It provides services throughout the country in competition with the private sector and is contracted by the National Transport Commission for a number of socially necessary services such as school buses, rural services and night services. Its primary role is to provide stability in the market and to prevent monopolistic behaviour on the part of the private operators.
Goods transport
Around 7 billion tonne kms of goods transport is undertaken in Sri Lanka annually. This translates to a per capita carriage of 340 tonne-km per capita per year. Historically, goods movement has increased by around 3 to 4 percent per annum at around half the rate of passenger mobility. The freight market share of the Sri Lanka Railway has come down to 2% in the recent past, from 32% in 1979 showing a drastic decline in the efficiency and competitiveness of
- Economic Review: Aug/Sept. 2011
the Sri Lanka F handling freight.
More than 90% ( carriage within Sri by private sector in bus transport,
large-scale opera owners can be cat and medium entri having one or a tw a handful owning This sector too o) an informal sect
Para-transit
Para-transit, predominantly I 350,000 three includes a wide other services ran Services to rura which are also and provided thr sector. The high low productivit behaviour are re some degree of r may be required
There have be efforts to orgar Some taxi co continued succe operations in Col being extendec wheeler industry there is a strong from passenge suppliers to co
informal and unr
Current Tra Policies
There are two proposals tha formulated for l the respective mi wider governmer in 2005. The N. Land Transpo Transport, 2009) by the Cabinet
Land Transpo comprehensive
gives clear dire away from the towards motoriz priority of publ private transpol

Railway (SLR) in Kumarage, 20 l l )
if the total goods Lanka is handled road haulers. As there are very few tors. Most truck egorised as small epreneurs (SMEs) o trucks with only g over 20 trucks. perates mostly as
which is made up of over wheelers, also cross section of nging from school vehicles, all of fully deregulated ough the informal rate of accidents, y and collusive :asons as to why egulatory control for these sectors.
en S. Ora e e Cent ise this sector. mpanies have ssful Call Centre ombo. This is now to the threeas well. However, preference both :rs as well as ntinue with the egulated industry.
sport Sector
specific policy at have been and transport by inistries based on it policies set out ational Policy on rt (Ministry of has been approved of Ministers. The rt Policy is a document which ction for moving e Current II O Ve ation. It calls for ic transport over it, priority of rail
transport over road transport, priority of non-motorized over motorized transport. It also sets out strategies to improve the management of omnibus transport as well as para-transport by the formation of corporate entities. The National Roads Master Plan (RDA, - 2007) was also completed in 2007. This sets out the development strategy for the national highways for the period up to 2016.
Current and future issues
With the anticipated 6 to 8 percent growth in GDP (Gross Domestic Product), it is expected that the demand for passenger mobility will increase at around 7 to 9 percent per annum. The vehicle growth rate is expected to reach a high of around 15% per annum. Based on this, and if the current rate of shift from public to private transport continues and taxes on vehicles and fuel remain at the current rates, the time required for doubling of road space would be 9 years. This will pose a huge burden on the economy due to the huge public investment and maintenance costs of highways, the private investment cost of vehicles and their operation and the external costs due to congestion, namely value of lost time and vehicle lost time. Vehicle km on the national network will increase from 27 billion to 55 billion vehicle kms by 2021, while passenger mobility itself will increase from 100 billion to 150 billion passenger kms per annum.
Even though Sri Lanka has a high density of roads, especially at the rural level, the quality of roads is an issue with most heavily trafficked roads having out lived their design life. The average network speed has been gradually reducing indicating that the expansion in road capacity is insufficient to keep up with the demand. This is most severe in urban areas. As a result, road speeds have not improved with many urban roads being congested during most of the day time. Road
5

Page 8
Safety is also an issue with design requirements especially those required for vulnerable road users including non-motorised users being inadequate or in most cases nonexistent. The opening of the expressways will improve travel between cities while making travel in and around Colombo slower due to the new traffic that would be generated by these expressways.
This will put enormous pressure on the existing transport infrastructure especially the road network in urban and suburban areas where the growth in economic activity is currently concentrated. Since it will not be possible to double the road capacity in these areas in such a short span of time, optional strategies would be to open up new urban areas or to rapidly improve quality of public transport.
Despite attempts made during the recent past, the quality and service of public transport has not kept pace in terms of modernisation and passenger comfort. This and rising per capita incomes have resulted in the gradual decrease of the share of public transport over the last three decades, even though the number of passenger carried has continued to increase the modal share carried by public transport viz a viz other modes has decreased. Estimates using TransPlan demand forecasting tools show that this will further reduce from the current 55% to 41% by 2021 and to 20% by 2031. (Kumarage, 2011)
The railway, though in continuous operation for nearly 150 years, requires re-engaging in the passenger and freight market it has lost to road transport over several decades. The depleted assets base, obsolete signal and communication system and aging rolling stock fleet severely constrain delivering a quality service to the travelling public and to goods shippers. This situation has further aggravated by the inappropriate organisation and management systems that have remained virtually unchanged over decades which are not geared to meet present- day customer requirements.
Bu s Tran spor backbone of pa since independ initiative provi which served nu addition to urba routes also set standards.
mismanagement, regulatory cont) eroded these sta sector, even tho the majority of p also facing a modernisation fa pace with the ch preferences.
Even though Sri Asia's best p systems up to th been neglect in modernisation comfort and va present, there is modern info communicatior applications or applications il operations or information diss the sector.
Overal, the ine land transport s Traffic congest Western Provi estimated at Rs while accident c at around Rs 20 (Kumarage, 20 avoidable de la waiting time in are estimated another Rs 30 while losses in p issues of poor r damages of goo other logistics re transport net estimated at ano at least. The c would thus amo billion per annu of the annual p allocation for roa cost translatest expenditure on 1 sector by both private secto inefficiency may which is conside
6

t provided the ssenger mobility ence. The strong ded by the CTB merous villages in un and provincial high operating
However, lack of adequate rol has gradually andards. The bus ugh still carrying bassenger trips, is challenge in st enough to keep nanging consumer
Lanka had one of ublic transport e 1960s, there has introduction of
for efficiency, lue addition. At hardly any use of ormation and (ICT)-based computer-based h the planning, in the public semination within
fficiencies of the system are many. ion costs in the nce alone vere 32 billion in 2006, psts are estimated billion per annum 10). The cost of ys, breakdown, public transport to cost at least billion to users, roductivity due to 2liability, flooding, ds in transit and lated costs of the work may be ther Rs 40 million onbined losses unt to over Rs 120 m, the equivalent public investment ads in 2010. This o 1/6th of the total he land transport government and rs. Thus, the be termed at 1/6th rably high.
The losses amounting from suboptimal investments and lost economic productivity, poor design and construction supervision, drainage damage and other losses cannot be accurately estimated, but is likely to be greater than this. These together almost always results in transport in all its forms and variations- be it public or private, passenger or freight, road or rail, urban or rural to be often among the most complained of public services deemed as being unsatisfactory by both private and corporate citizens.
New policy perspectives
To provide a sustainable, efficient and effective solution to satisfying the increasing demand for nobility requires a new policy perspective. The following five new policy interventions which a Ee diametrically opposite to current practice are recommended to correct the current trend toward transport chaos.
Policy intervention 1: Prioritising public transport over private transport
Sri Lanka has been following a 'Cars-First policy with the import liberalisation in the late 1970s. The importance given to requirements of private vehicles and the corresponding neglect of improving public transport to remain competitive with private vehicles has given Sri Lankans a clear message that travel by bus or rail should be as long as you can get a car for yourself. Clearly, the increased congestion proves that policy is not sustainable.
In order to prevent gridlock on our roads, the envisaged rapid increase in demand for mobility discussed earlier will require a strategic approach that should essentially look at improving public transport as the most formidable but yet most sustainable approach. This can only be achieved by providing quality public transport demanded by passengers as demanded in keeping with their increasing
Economic Review: Aug./Sept. 2011 -

Page 9
income so that they are converted from the once captive public transport users to those who will use a bus or train by choice. This would mean providing quality vehicles, high end services, modern multi-modal terminals, auxiliary facilities such as park and ride, better stations, modernisation of facilities and technology, electronic ticketing and seamless travel.
However, none of these may be achievable in the bus or rail system unless the following reforms take place,
i. Consolidating private bus owners into manageable corporate entities based on operational features and employing competent and qualified managers to convert them from the informal to the formal sector. It is noted that as long as the private buses are characterised by informal sector behaviour, it will not be able to respond to the challenges of nodernisation and custoner care demanded by the modern-day customer who likes to choose from different options.
ii. The SLTB also requires its own revitalisation to become an efficiently-operated transport company. While State-owned transport companies that provide exemplary services are found in many countries, such can only be achieved if independent and professional managers are allowed to develop such institutions without being called upon to subscribe to political objectives. Trade unions must be distinct and focus on worker welfare and allow management to focus on long-term viability and Cu St Omer satisfaction.
iii. The management of the railway also needs reform to survive the commercial realities of transport service provision today. Innovating its services in keeping with customer preferences and technology, utilising its assets through better scheduling and dispatching, attracting new users
- Economic Review: Aug/Sept. 2011
through provisio carriage are oppo available but un
However, th requirement
gονerηπnent In u: right about turi reforming the p sector to support to pursue a Publi policy. The failur effectively refo transport sector “Cars-First” polic lead us to grid lo
Policy inte Prioritising rair road transport
Railways are w
seve Se Ver: applications. In C in Kandy, it can the excess dema to rail. It can car of people to cong in a short period that the road f perform as efficie can carry heav longer travel legs. concentration of 1 Western Province east and the nor It is well positio international pc However, these need to be devel merely confined t as carrying
subsidised rates
There are many ( the railway has useful to the ave Similarly, it electrifying the s in Colombo or in These are projec nooted for decad ignored by politic lacklustre leade1 engines and car basis and carryi track rehabilitat for preserving a such alone is no type of turnarour requires in Sri people need from

in of inter-modal rtunities that are -developed.
e underlying here is that
st realise that a n is required in public transport t a policy change ic Transport First” e to urgently and rm the public will only allow the y to continue to ck on our roads.
rvention 2: | transport over
ell positioned to al transport olombo and even be used to divert ind for road travel ry large numbers ested city centres of time, a feature inds difficult to ntly. The railways y containers on , thus shifting the manufacture from : to the south, the th of the country. ned to serve our orts and airport. valuable linkages oped rather than o small roles such
CO minnu terS at
opportunities that for making itself rage Sri Lankan. has scope in uburban services carrying tourists. ts that have been les but repeatedly all indifference and rship. Importing riages on regular ng out expensive ions are essential n institution. But t adequate for the ld that the railway Lanka. What the the railways is a
clear resurgence of service quality that will restore the confidence in the railway that would increase its use so that the people are assured that the railway exists to support the people and not vice-versal
To do this, the railway has to be seen as a future mode of transport and developed by giving priority to services that it can best contribute. Expanding its network in areas where it has no competitive edge should be avoided. It should concentrate on areas such as urban commuter, long distance freight and leisure travel. The railway must be considered as economic tool and priority given to develop niche areas over road developments in such areas. As such, rail- based development must be given priority O Ve road-based development in urban areas, in connection to heavy nodes such as ports and airports and trade
ZOmeS.
Policy intervention 3. Prioritising non-motorised transport over motorise di transport
A return to promotion of nonmotorised transport is also a timely priority. Road transport increases trip lengths un necessarily making users captive to motorised modes of transport. In today's context where increasingly people spend 10-20% of their waking hours in travel, many countries are actively investing in promoting non - motorised travel, mostly on bicycles. Even though large nodal shares are not expected, they also promote short distance travel, as well as mitigate environmental pollution caused by motorised travel. A clear policy reversal is required in road design, in building design and in transport policy interventions in providing space and facilities for use of bicycles. The idea that non-motorised transport is archaic needs to be changed with clear policies that promote bicycle use.

Page 10
Policy intervention 4: Prioritising professional administration over politicised administration of the sector
One of the biggest obstacles in reforming the transport sector is the critical shortcoming of professional administrators in the sector. Much of transport today is in the hands of the informal sector. This has given ample opportunity to enable politically-aligned administrators to be placed as managers and effectively used as gatekeepers for collection of benefits as opposed to task them to develop the sector. The lack of technical and managerial leadership in the sector clearly shows that it does not have professional administration capable of internal reform or development.
One clear policy reversal should thus be to ensure by regulation that the positions of management and administration in the sector will be fill only by the professionallyqualified persons. The long-standing belief that has continued over several decades now, which is that a political discard or the kith and kin of a minister can effectively provide leadership in transport which is a technical discipline needs to be reversed.
This is clearly illustrated in the fact that there is not a single institution responsible for planning or integration in the transport sector. Existence of multiple agencies in transport service and infrastructure provision, with poor coordination between then leads to fragmentation of the legal authority to plan and to enforce agreed upon plans, which causes duplication of effort and haphazard decisionmaking which in turn has made internal change and development impossible. Thus external-led reform is crucial.
Policy intervention 5: Prioritising modern transport and logistics systems over traditional systems
It is well-known that more than 30% of the agriculture produce goes waste before reaching the
consumer. Mai
between farm-ga price prove the perishable produ Similarly, the am time loss due to
tables, intermoc runs in to billion
Accidents also c
Rs 20 billion a industry has technological
systems chan systems that ol years are allowe fear of upsetting by them. These consolidation
sectors which powerful. Howeve expensive as the and duplication low utilisation (
three wheelers an
vans are testimo
is necessary to is a compulsic technological be given years, in technology, te warehouses, pa and unloading Systems to il dispatching and necessary to erns productivity of provision of high services at the li
Government poli trend that trac
should endear sl by a policy that fa efficient syster should also be 1 million people ar in the transport in very oppres Modernisation S attempt to je livelihood, but ar their employmer people whose e depend on th transport servi

oked differences te price and retail : inefficiency in ce transportation. ount of passenger lack of bus time
dal coordination, of rupees a week. ontribute to over year. Overall, the S had little
innovation or ge. The perated over the d to continue for
those who survive 2 encourage the of the informal
are politically er, they tend to be sy promote waste of resources. The
Sa 6
of private buses, ld even trucks and ny to this fact. It ensure that there
on to arrive at
nchmarks before
terms of vehicle rminal design, ckaging, loading systems, etc. improve vehicle routing are also sure high level of resources and -quality transport
OWest COSt.
cy to reverse the litional systems hould be replaced vours modern and ns. However, it noted that over a e today employed sector. Many work sive conditions.
should not be an opardise their effort to improve it. The billions of
conomic welfare e efficiency of ces provided by
these people should also not be made to suffer loss on account of their refusal to improve.
Conclusion
It is apparent that the transport sector in Sri Lanka requires major change in policy to meet the future challenges that are to be posed by increasing mobility and vehicle ownership. In this case, five policy U-turns are essential to ensure
that Sri Lanka can expect an efficient and sustainable transport
that
expectation of it people and
system will meet the
corporate citizens.
References
Kumarage Amal S. (20l 1). Transport Statistics', unpublished data, Sri Lanka.
Kumarage Amal S and J. Weerawardena (2009) Greater Colombo Traffic Management Study, Transport Research 8, Study Centre, University of Moratuwa.
Kumarage Amal S. (2010) “Review of Sri Lanka Transport Sector, World Bank, Colombo.
Ministry of Transport (2010). Land Transport Policy, Sri Lanka.
Ministry of Transport (2011). Sri Lanka WWW, not.lk
Road Development Authority (2010) National Road Sector Master plan, Sri Lanka.
Shaefer Andreas (2008). Long-Term Trends, Global Passenger Mobility, UK.
Footnotes
kumarageOSltnet.lk
2 National Roads, i based on RDA Planning Division Database, others based on assumed growth rates.
Economic Review: Aug/Sept. 2011 -

Page 11
Road Transportatic Developments in Sri
Abstract
he A- and B-class roads of the national highuay retuork make the major part of the traffic-carrying network of the country. The development and maintenance of the retuvork has beer entrusted to the Road Development Authority of Sri Lanka. The development of the network at the initial stage uvas very slou due to the limited funds allocated for the development. V7: the realisation of the importance of the retuvork for the ecoronic development of the country, the government has launched an accelerated development programme utthforeign funding. The development of high-mobility Fetuvork has also been started, and they are in various stages of development.
Keywords: National Road Network, Expressways, Urban Traffic Congestion, Integration, Surface Transportation
Historical Background of the Road Transportation in Sri Lanka
For several centuries prior to 1850, the transportation in Ceylon remained as a public utility service. Since the economic activities were principally for local consumption, long-distance transportation and travelling with high speed was not essential. labour, men and women carrying bulk on their heads or in make-shift litters, was the most readily available means, completely acceptable and representing a
common mode of transport.
As the economic activities shifted to the export of raw materials, crude
- Economic Review: Aug/Sept. 2011
The use of manual Table l
Road class 1945
rubber, coffee, t more rapid and e transport were re. to the l shipments along inland waterway carts and railwa
During the early
motor vehicle, e altered the exist
rise
passenger and gc
Organisational
Prior to 1850, ul administration,
and the constru the island had b
the military auth year 1833. Thes been handed o authorities of
administration in
to 1850, there ha "Department of F Commissioner (
Thomas Skinner.
of the Departme been changed tc and Commissi
Department". It v name till the yea the year 1863 th been changed ti Department" ( designation of
Road
All roads 10,730
"A" class 1,400 'B' class 1,300 'C' class 1,800
'D' class 2,600
Others 3,630
Sources: Arjuna Author

»n and
Lanka
ea and coconut, :fficient nodes of quired. This gave se of marine
the coastal and
's, and bullockys on the land. 19th century, the specially lorry, ting concepts of bods transport.
changes
nder the colonial
the surveying of ction of roads in een a function of
Lorities up to the e functions had
ver to the civil
the colonial
1833. From 1841
d been a separate Roads” under the
of Roads, Major In 1851, the name
nt of Roads had
“Civil Engineer oner of Roads
was known by this r 1862. It was in
at the name had
o "Public Works
its Future
Dr. Tissa U. Liyanage
Martaging Director Master Hellie's Engineering Consultants Ltd.
and
H. M. K. G. G. Bandara
Director - Planning Road Development Authority
had
unchanged. It was only in 1867
Department remained
when Major Skinner retired, that the designation had been changed to "Director of Public Works”.
In October 1969, the PWD was separated into two departments,
the
Highways and the Department of Buildings. The PWD continued by that name from 1863 to 1969. In 1905, there were 3,765 miles of major roads in Sri Lanka.
namely, Department of
In 1971, all functions of the road maintenance and improvement of Department of Highways were handed the TCEO (Territorial Civil Engineering
O Ver tO
Organisation) of the Ministry of Irrigation, Power and Highways, leaving the Department only with
PWD), but the
the Head of projects.
lengths in kilometres in selected years
the major highway and bridge It was around this time
that the
O V 6C Ir S 6C 8a. S
in Sri Lanka system
1963 1971 1981 1991 1996 W a S 20,123 21,49665,890 94,651 100,000 abolished. 1,800 2,201 3,798 4,116 4,220. After that, 2,700 3,100 5,059 6,465 6,908 t h е 3,500 4,488 10,856 5,012 8,457 Bridges 3,800 2,972 7,606 9,078 5,346 - - - 8413 8.735 38571 j6gg80 7506g Organisation Atlas of Sri Lanka, Road Development of the ity and Central Bank of Sri Lanka Department
9

Page 12
was converted into a corporation called the "State Development and Construction Corporation".
In 1978 when the TECO was scrapped, the road maintenance functions were again handed back to the Department of Highways. In 1985, all functions of the Department of Highways were handed over to the Road Development Authority (RDA) formed under the Road Development Authority Act No 73 of 1981. With the 13th amendment to the constitution, only the national highways which consist of A- and Bclass roads were left with the RDA
and other roads were handed over to
Provincial Councils.
Road network
Since the independence, the successive governments have paid more emphasis on improving and expanding road transport infrastructure than the other transport sectors such as railways, inland waterways, coastal shipping, etc. In a way, this has been an outcome of an attempt to accommodate the growing transport demand rather than a carefullyplanned infrastructure development programme considering the needs of the overall transport sector, bearing in mind macroeconomic goals and objectives. Table 1 provides information on the road length of the country for some selected years since 1946.
Road transportation of Sri Lanka
The first passenger car was imported to Ceylon in 1902. The road system at that time was only main roads connecting principal towns. They were metalled and tarred, and had sound bases suitable for traffic
conditions at the time. Road construction preceded vehicles, because of the need for permanent roads which could withstand the torrential rains. Many steel bridges
10
Table 2 Ro
Country
Sri Lanka
India
United States
China
Brazil
Pakistan
had also been c year 1900. Oth "constructed" bu rather primitive
Some of the his in the road cons below:
i. The Bridge Colombo to cros was completed
This was used t
ii. The Kandy ro, and Galagedara the year 1831.
iii. The Kand, Kadugannawa w in the year 1831 of this road had eleven years.
iv. The first latti the name Victor: in 1895 over th
By the time of th lorry in 1907, t planned-constru motorable road started.
The road system progressively
improved so tha' after 1945, it wa
to ECCO unprecedented vehicles. Since
the motor vehic
rapidly. The almost 5,000 in road to its sys During the sa number of vehic almost tripled.

ad transportation indicators for the year 2011 in Sri Lanka and in some selected countries
Road Density
1.50
O.65
O.34
onstructed by the
er roads were not tnerely graded by
eaS
torical landmarks struction are given
of boats near is the Kelani River in the year 1822.
1895.
ad via Kurunegala was completed in
y road through ras also completed . The construction been taken about
ce girder bridge by a Bridge was built e Kelani River.
he advent of motor he beginning of a licted, all-weather,
system had been
was gradually and extended and t during the period as reasonably able modate
growth of motor then, the use of le has been grown PWD has added
hiles of additional
tem since 1947. ame period, the les, however, has
Contribution to
Economic Review: Aug./Sept. 2011
demand
t
92 98
89
6O
9. 96
During the seven year-period from 1955 to 1962, while the road mileage has shown only a slight increase, the number of motor
increased at
vehicles have
un precedented proportions, especially during the three-year
period from 1958 to 1961.
According to the record of the Road Development Authority, the islandwide ratio of persons per notor vehicle decreased from 177
in 1947 to 71 in 1961. These figures compare favourably with the ratio of other nations of the
world and serve as a barometer of the rapidity with which Ceylon, since its independence in 1948, is approaching the saturation rate of the more highly-motorised nations.
Development of National Highways in Sri Lanka
Sri Lanka has a well-spread network of roads with a total length of about 1 16,800 km as per last year records of the Road Development Authority. The RDA maintains a total length of 12,020 km of trunk and main roads (A- and B-class roads) designated as National Highways. The secondary roads totalling about 16,000 km are managed by the Provincial Councils. There are about 4,000 km under government institutions like Mahaweli Authority, Department of Forests, Department of Irrigation, etc. The balance 84,800 km are minor roads that fall within various local bodies. The total length of roads, thus, accounts for a density

Page 13
of 1.5 km per sq. km of land area. This is considered quite high when compared with that in other developing countries. (Table 2).
Despite this high road density, the land area occupied by roads in Sri Lanka, is quite low due to narrow widths of the right-of-way of our roads.
The road transport which accounts for 98% of the total freight transport and 92% of the total passenger transport of the country far dominates the other modes of transport as railways, inland water transport and air transport. This is due to many technical, economic and social advantages of road transportation over the other means, such as:
i. Comparatively low coverage of the
island by railways
ii. Reliability of the road transport
service
iii. Fersonalised use of road transport
iv. Well-spread network of roads
v. Deterioration of railway service in
the past
In view of that the dominant role played by road transport compared to rail and other modes, demand is bound
to increase and not dininish in the
future. Therefore, the importance of the maintenance, rehabilitation, upgrading, expanding and development of the road infrastructure of the country need not be overemphasised. Major part of the traffic of the country (70% of total vehicle
kins) is carried on the national
Development plans of the in a ti on a high w a y network
In spite of t h i s substantial increase in t r a f f і с de m and ,
there was very little investment for the
construction of widening anc existing trunk I From 1985,
undertaken se rehabilitation p. foreign-donor a
The following identified by th the capacity of meet future de development of
i. Developmer network (Ex. uvags/High sta highways
There is a need high-mobility. network as
expressways to time for intercit need. It is expe national eco. important work passenger trav travel time in le This need ca. analysing th" accident of O network compa
highway network as the network is developing well spread all Table 4 Average accident over the country. Type of Accident Number o (Transport in or estimat South Asia, Fatal viewed 18th Grievous
Non-grievous November 2011, 器 (Reported) sh t t p - 1 Damage (Unreported) go. Worldbank.org/ Source: Economic Feasibility Repo HYDXPSL1702). Matara to Hambantota, , d
- Economic Review: Aug/Sept. 2011

Table 3
Improvements to national highways
during 1985-2004
Period Length (km) Funding source 1985-1987 299.5 World Bank
1986-1992 219.OO ADB
1992-1995 274.OO World Bank
1992-1995 154.30 ADB
1996-2OO 18456 ADB
1999-2002 44.OO EDCF Korea
2OOO-2004 174.OO ADEB
200-2004 7.O.O. JBIC Japan ADB - Asian Development Bank
EDCF - Economic Development Corporation Fund
ЈBIC
- Japanese Bank of International Corporation
Source: Record of Road Development Authority
new highways or for i improving the oads prior to 1985.
the RDA has averal major road rogrammes with the ssistance (Table 3).
activities have e RDA to increase the road network to mands of economic
the country:
t of high-mobility pressuays/Motor пdard пеир тајor
i for improving the intercity highway
limited access reduce the travel y travel as a special cted to improve the nomy by saving ing hours by saving el time and freight ong-distance travel. n be justified by e speed and the ur national road red to that in other and developed
countries. The average speed on national road in United States is 60km/h in urban areas and 80 - 1 10km/h in rural areas. The average speed that can achieve in Sri Lankan national roads at present is 40km/h in urban areas and 70km/h (is the maximum design speed) in rural areas. However, due to the denand for high-speed travel for intercity travel on this national road network, drivers tend to violate the speed limits which results in serious accidents. Therefore, it is required to construct high-speed mobility network, in addition to improving the existing national road network in Sri Lanka.
ii. Major improvennents to the existing national highway network including realignment
The present design speed standard for the majority of the national highways (almost all B-class roads) is 40km/h due to the existing road geometry as well as their pavement condition. However, as per the worldwide records, average
rate on Gale Road (Matara - Hambantota)
f accidents reported Accident rate on A2 ted per year (accidents per inn vehicle kms)
S2 O.7 94 1.3 190 2.7 2O 3.O 1,000 14.2
rt, Extension to Southern Expressway from University of Moratuwa, 2007.
1.

Page 14
demand should be at least 70km/h on national highways to contribute to increase economic growth. The police records indicate that the accident rates are increasing with the increase in vehicle growth rate. The main reasons can be the bad geometry, especially in rural areas, deteriorated surface conditions, driver stress, increased travel time, congestion with reduced road capacities in urban areas, and uncontrolled, unauthorised roadside development, etc. Also the major burden to RDA is the need for investing a large amount of money on maintaining these aged road pavements to maintain a satisfactory level of service to the users. Therefore, it is required to improve the national road network with very good surface and improved geometry.
iii. Construction of a system of ring roads/major by-passes and flyovers to cities, major tours and inportant urban centres
One of the major problems in road transportation is the concentration of traffic movements in urban areas. This is due to the concentration of the urban activities in certain areas and increased local traffic movements within such areas. Therefore, additional capacity
developments are needed in the
absence of traffic management
schemes which can also be used to reduce traffic demand in urban areas. Even though, these traffic schemes ae
like
Singapore, Malaysia, England, none
management
successful in countries
of the Sri Lankan Governments has initiated any congestion pricing so far. Even though this will be a social issue in the short term, it is important to consider congestion pricing for busy areas like Colombo in the long term as increased
capacity will cre busy areas and
lasting solutic congestion in Sr
The infrastruct options for th should be const roads in conges the long-di Introduction of flyovers to imp capacities and c. ring roads in urb: the connectivit radial roads inc network capacity
Development road network
Considering the the network, five identified as an i. They are:
i. Southern tran project (Alterna Colombo to Gali
ii. Colombo -
expressway
iii. Outer circula City of Colombo
iv. Alternate high to Kandy
v. A lite r n a highway frc Katunayaka Anuradhapura v Padeniya
These highw projects are different stages development indicated below the detailed individual projec
. So a t he t r a n s p o d е и е 1 орт е project
Because of t S t r a t e g
importance to o country’s politi
12

te more traffic to vill not be a longn to the traffic
Lankan cities.
ure development e medium term uction of by-pass ted cities to ease Stan Ce trips. carefully-planned rove intersection instruction of new in areas to improve y between main rease the overall in urban areas.
of high-mobility
major corridors of
expressways were nitial step by RDA.
sport development te highway from e and Matara)
Katu in a yak a
ar highway to the
way from Colombo
stability and economic prospects, there is an immediate need for improving transportation to the southern region. The existing Colombo - Galle-Hamban to talWellawaya Road (A2) provides the main link between Colombo and the Southern Province and is already heavily congested. Due to the heavy traffic on this highway, accidents are also very high.
According to the recent feasibility study of the extension to the southern highway reveals that the present rate of safety on the A2 road (Table 4) roughly translates to around 740 deaths per billion vehicle kins. This is around 3 times more than what is observable on international expressways. Thus, a 75% reduction in road safety may be assumed by constructing a. standard expressway. However, such safety will only be possible if the road designs are in order. To achieve this, there should be adequate provision for road safety monitoring
and enforcement.
The expressway has already been completed from Kottawa to
To Colombo
e.
0 km Kottawa Interchange
Kahathuduwa linterchange ta "A Aоe
4 km
Galanigama linterchange
ay in Kalutara of Dodangoda Interchange
3S
Aluthgama
Welipenna interchange of
tS:
Kurudugahahetekma linterchange 68 km Ambalangoda
Baddegama interchange r : 80 km
r :
Hikkaduwa
2 な
O he Gale hts:
C Y
he Figure 1. Interchanges of the southern cal expressvvay
Economic Review: Aug./Sept. 2011

Page 15
Pinnaduwa (Galle) and was opened on 28 November 2011 for the traffic. The expressway starting from KottawaMaklum bura on the ColomboRatnapura-Wellawaya-Batticaloa (A4) will traverse the hinterland areas of
the Kalu tara, Galle and Matara Districts and will end in Godagama on the Galle-Akuressa Road (A24). A new access road to Galle from the expressway has been constructed under the project. The total length of the Highway is 126.1 km. Interchangers will be the only points where traffic can enter. The interchange locations from Kottawa to Galle are shown in Figure 1.
The highway has been constructed with a 4-lane facility and land has been acquired for a 6-lane facility in future. Total estimated cost for the full 126, 1 km length of the expressway is around Rs. 95.3 billion.
. Colon bo-Katu na ya ka &xpressuvagy project
The proposed expressway has a fourlane facility to cater to a design speed of 110 km/hr. This 25-km expressway has been provided with four interchanges at Peliyagoda, Kerawalapitiya, Jaela and Katunayaka. The Outer Circular Highway (OCH) has been connected to the expressway at Kerawelapitiya.
The construction cost of the project is around Rs. 32.0 billion and funding has been obtained fron Exin Bank of China. The work is in progress at present according to the present construction programme and will be completed by the end 2012.
idi. Outer Circular Highuvay (OCH) to the city of Colombo
The outer circular highway which has been located approximately 20 km away from the city of Colombo has been identified to cater to increasing traffic demand, to minimise traffic congestion on the existing trunk roads radiating from the city and to
encourage regional development
and a.
b e t t e r
balance
in urban
growth.
T h e
project will
b e T
implemented
in 3
ph a ses, - the H
construction
work of the
phase 1
and
f r o m
Kottawa to -
Kadu wela Sc has already b e e in
started under
The procurem phase - 2 fro Kadawatha is
present. This s funded by Japa from Kadwatha
to be implem basis.
The highway w with a 4-lane fa
land will be acc
facility for f estimated cos
billion rupees.
iv. Alternazte highuay
With a view
serious traffic
existing Colomb
it has been dec
new limited ac
Colombo to K
economic dev
Central, No. Eastern provin
- Economic Review: Aug/Sept. 2011
 

ble 5
Road lengths completed from 2005 to 2010
Length completed (km) Under Foreign Funds Under Local Funds Total
Ꭰ5 59.7O 238.89 298.59 D6 174.81. 439.13 605.94 )7 2O2.14 124.60 326.74 O8 355.45 59.03 414.48 D9 1,008.33 28O.OO 1,187.66 O 2O7.40 536.30 743.74 tal 2,007.83 1,677.95 3,577.15
urce: Road Development Authority.
ble 6
The existing sources of funding and
selected road lengths for improvements
so Funding source Length under taken
(km) Asian Development Bank 373.5 2 French Funding 127.4 3 World Bank 134.3 4 Chinese Banks 99.1.8 5 JICA Japan 99.0 6 EDCF Korea 128.6 7 Local fund 4500 Total 1,931.1
ource: Road Development Authority.
Japanese funding. ent work for the
In Kaduwela to
s in progress at jection also will be
n. The third section
to Kerawlapitiya is 2nted on turnkey
vill be constructed cility initially, and uired for a 6-lane The total
t is around 84.4
til TC.
Colombo-Kandy
to overcome the
congestion on the bo-Kandy road (Al), ided to construct a cess highway from andy to promote relopment of the rth-Western and
ces of the country.
With the feasibility study carried out in 2000/2001, a road corridor has been identified for this highway. The road corridor starts from Kadawatha (interchange with OCH), and it will pass close to Gan em ulla, Gampaha, Ambepussa, Devale gama, Rambukkana, Hatharaliyadda and, Hedeniya, and end at Katugastota on Kandy-Jaffna road (A9). The total length of the corridor from Kadawatha to Katugastota is 98 km. There will be 10 tunnels for the highway of varying lengths from 30 m to 450 m. The highway will be constructed with a 4-lane facility in two stages. The first stage is from Kadawatha to Ambepussa, for a length of 48 km. Land acquisition work for the stage l is in progress at present.
v. Ka tu na ya ka - Pa den liyaAnuradhapura - Jaffna highuvay
Presently, there are 3 ways of reaching Anuradhapura from Colombo varying from 168 km. to 204 km. in distance. The shortest
13

Page 16
and the most common route is a
combination of several B-class roads up to Padeniya and along an A-class toad to Anuradhapura from there onwards.
A recent study revealed that the construction of an expressway starting from Katnayaka with link to Colombo- Katunayaka expressway is difficult task due to the expansion of Katunayake airport and the high level of land acquisition involved in the area. The expressway starting from Colombo-Kandy highway at Ambepussa or location close to that is more viable, and it can be linked to the expressway network to the eastern and the northern part of the country. This highway will start from Colombo-Kandy highway and pass between Kurunegala and Wariyapola and link to Dambulla. There
onwards, it can be linked to Trinconalee, Anuradhapura and
Jaffna.
iv. Eactension of Southern Transport Development Project (STDP)
With the government initiative of the development of Hambantota as an international hub with Hambantota sea port and Mattala airport, there was a necessity to extend the southern transport development project to Hambantota to link these facilities to high-mobility network. The RDA has carried out a feasibility study and identified a trace of a 74km length. This will be developed with a 4-lane facility initially and improved to 6 lanes later. The ground survey work for the identification of exact trace is in progress at present.
Major improvements to the
existing national highway network
With the realisation of the
requirement of rapid development of the existing network, government
has launched accelerated
programme for til the investing on the high-mobility
completed highw five years, bas
existing
records, are give:
There improvement
different source road lengths und given in Table 6.
are se
The RDA has dev
Road Master Pla development of
2007 covering tl from 2007 to 201
Some Thought planning improvements
Urban highuay
The urban highv are well develope than two-lane st very good surfaci riding quality is level. However, t in our cities
congestion for se day. The reasol number of vehic
road network fo: during different
The limits of the
have always exc above reason on at present. H expansion of the not possible with building infrastr urban highways.
The reasons
congestion in url public transpo income concen areas and high private vehicl taxation polic imports, afforde
14

he improvement of network while
above-mentioned
The ay projects in last ed on the RDA
n in Table 5.
network.
veral on-going projects under s of funding and
er these funds are
reloped a National in (NRMP) for the national roads in he 10-year period 7.
is for the future of highway
set up
ways in Sri Lanka d with often more
andards and with Ing. Therefore, the at an acceptable he major problem is the traffic
veral hours of the
in is that a large les use our urban
r various reasons hours of the day. highway capacities eeded due to the
these urban links owever, further 2 road widths are already developed ucture beside the
for the traffic
pan areas are poor rt supply, high tration to urban affordability of es, undesirable ies for vehicle
ble fuel charges,
undesirable taxation on fuel charges, friendly-procedure for obtaining driving licence and inefficient integration between public transportation (bus and railways).
Therefore, one main concern in traffic management in highlycongested urban roads is widening of the roads in urban areas. But this is not possible. The options that have been adopted in other developed countries are; improving public bus and railway transportation in urban areas as a national policy, restrictions of the usage of private motorised vehicles in congested areas by means of congestion pricing schemes, revision of the vehicle import policies, parking restrictions, increasing street parking fees and so forth. Most of these are in practice in Singapore and other developed countries and has been very successful at present and well contributed for high economic developments of such countries. What we have to think is that "We need people to the cities but not the vehicles that occupy valuable
activity spaces of people".
Furthermore, we need to improve the urban highway infrastructure for improving the highway capacities by various ways to make sure that the required traffic flows to the cities are uninterrupted for future demands. Improvements to highway intersections, segregation and improvements to pedestrian facilities, parking control and facility designs are most important highway improvements in urban areas. Intersection capacities by improvements and review of traffic signals, grade separation with flyovers, channelisation at junctions and introduction of oneway traffic systems are some options. However, these should
be implemented after very
Economic Review: Aug/Sept. 2011 -

Page 17
comprehensive studies. Therefore, it is our responsibility to make use of the professional knowledge and integration always to make sure that we do the correct things to avoid the wastage of valuable resources for the economic development of the country.
High-mobility road
network
intercity
It is important to have a very good high-mobility intercity road network in the country to connect the main district capitals of the country. The initiatives have been already taken by the RDA to cater to this need. The above-mentioned expressways have been proposed, and they are at various stages of development from design to implementation. It is important to plan high-mobility network according to the economic development master plans for the entire country and to suit to the future demands between the
maina capital district centres. in Sri Lanka. The already proposed expressways have covered only the Western, Central, and Southern provinces according to the present plans. However, there is an immediate need of having connectivity to the North, North Central and Eastern provinces to link this expressway network. Also, it is important to link Uva province to have an economic balance among different geography of the country to elevate the most suffering region by poverty.
Integration between highway and railway
Even though we have planned many highways and expressways, there was no thought of integrating them with railways. This is a very important aspect from the economic development of a country. It is very useful for the alleviation of the traffic congestion in urban areas by increasing the passenger and goods
carrying capacities by improving the
- Economic Review: Aug/Sept. 2011
mass transpo most develop successful toda
be the main an way of mass tra surface. It is im the capacity o systems by m speed and fre headways. Elec systems shoul for railway developments solutions, evel expensive and economic inpa
Conclusions
There is very p the road ager development o Measures have
for planning significant leng across the cou integration transportatio
management, distribution of not been consic plans as expec long term. Alsc needed for the
cost effecti
investments
transportatio
country as a trying to evalu sector alone.
kilometres of a
indicator of th
the transportat for economic c
than the vehic
the people tra very useful to improve the ec giving facilities of Sri Lanka f transportatio economically integrating an

rtation modes as
ed countries are y. The railway must d most economical
unsportation on the portant to increase f the mass transit
eans of increased quency with low trified trains, metro d be the solutions
infrastructure
as long-lasting h though they are nake short-term
cts to the country.
bositive thinking of
cies towards the
if the road sector.
already been taken and improving a gth of expressways ntry. However, the
of surface n, urban traffic equitable benefits, etc., have
iered in the master
rted targets in the more emphasis is evaluation of the
veness of the
to meet the
In needs of the
whole rather than
ating the highway The passenger country is a better e sustainability of ion of that country levelopment rather cle kilometres that
vel. Therefore, it is
think how we can
onomic activities by for the labour force or their day-to-day n needs in an
viable manner by d making possible
improvements to the surface transportation of Sri Lanka.
Bibiliography
Transport Research Board (1995). Highway Capacity Manual, Special Report, Transport Research Board, National Research Council, Washington, D.C.
Tissa U Liyan age and We er awardena, W. J. (2009). Performance of One-way Traffic System in Colombo and Suburbs. Proceedings of the annual sessions, Institute of Engineers
Sri Lanka, pp. 9-16
Iran manesh
Pedestrianisation
Na sinn (2008).
great necessity in urban designing to create a su stainable city in developing countries. 44th ISOCARP Congress, viewed 20 November 2011, 
Rodrigue, J.P. et al. (2009). The Geography of Transport Systems. Hofstra University, Department of Global Studies & Geography, viewed 25 November 2011, 

Page 18
Traffic and Road s
Abstract
mproving road safety is getting more attention all over the
uorld due to increase dr. number of road accidents and associated loss of lives and resources. Safety management concept is being promoted to achieve acceptable safety standards. Traffic management is considered one of the tools that can effectively be used to achieve improved safety standards.
Introduction
A road accident is defined as a
collision of one or more vehicles resulted due to un expected sequence of activities. When a road user perceives a possible hazard situation, he or she usually undertakes an evasive action. Those who fail to complete the evasive action(s) prior to reaching a point of no escape ended up with a collision. In a road environment, a collision is a result of deficiency between road user performance and system demand.
It is important to consider what is meant by "safety". The concept of safety is dependent on individual perspective. Though the traditional practice is the consideration of the number of accidents that occur as a measure of safety, it is not a reasonable measure as we cannot
allow a defined number of accidents to happen before mitigating hazardous situations. Another measure that can be used is risk of meeting with an accident. There are two aspects to this concept. One is the risk for an individual of meeting with an accident and other is the risk that passing road user will generate an accident. As complete elimination of accident risks is an
impossible task, decide on an ac
inherent risks.
accidents is
quantity and eas, risk of an probabilistic q difficult to be eva
are available to
of risk of accid
location. Anc
measure that cou
user stress level. level is a qual which is very sub be considered
representation c level of safety fol
Today, safety i. "management defined as the st
risk of harn t
property damage maintained at *Acceptable lev continuing pro idertification
management.
The need for in
Ignoring safety h to increase in serious accidents
to manage accident risks on roads due to in cre a sing trends in road accidents and
er OrIOUS CO St of road accidents that is estinated Over 10 Billion Rupees per year that include vehicle and road furniture d a m age s , medical costs
16

afety Management
it is necessary to ceptable level for The number of
a de terministic
y to measure. The accident is a uantity and is aluated. Few tdels evaluate the Wel lents at a given ther extreme
ld be used is road
Road user stress
itative measure jective, but it can as the correct if the acceptable
individuals.
s considered as
of risk" and is
late in which the
o person or of is reduced to, and
or below, an rel through a cess of hazard
and risk
terventions
azards may lead the number of i. There is a need
Prof. Saman Bandara
Department of Civil Engineering University of Moratuuva
and police and other administrative costs. Further, having no positive measures may lead to loss of confidence of road users.
The main objective of the safety In anagement unexpected
is to minimise
situations encountered by road users that may result in a conflicting situation. As shown in Figurel, USC con centration level (performance) can change with time due to a number of reasons such as engaging in other activities such as tuning the radio on, looking at a road side advertisements or falling asleep. However, when a driver perceives a risk in the road environment, he/she would pay the performance curve can go up. At the meantime, the road environment has its own behaviour. When the road traffic is less or when there
are no road-side obstructions or no road - side friction, environment
more attention and
ce 鸟 User Performance
System Demand
Tine
Figure 1. Cause of an accident
Economic Review: Aug/Sept. 2011


Page 19
does not demand a higher user performance, and thus, the system demand curve will be low. Some situations such as damaged road surface, sudden pedestrian movement across the road or an unexpected manoeuvre of a nearby vehicle will increase the system demand. When ever the u ser performance level falls below what the system demand from the road
user, there can be an accident.
Based on the above explanations, there are two strategies to reduce traffic accidents; one to increase the driver performance level and other to reduce the system demand. Driver education, user knowledge about road rules, hierarchical levels of driver behaviour, law enforcement, physical and mental fitness and other fiscal policies such as insurance, fines, etc. have been identified as the factors influencing the user performance levels. Steps that are required to increase the user willingness to improve their performance levels and policy changes necessary as incentives for the road users to change their attitudes need to be identified. System demand can be reduced by proper vehicle design, correct intersection and highway design and maintenance practices.
The main elements involved in road accidents are the road user, the vehicle and the road environment. A sonewhat loose parallel can be drawn between these and the host, agent and vector concept used in epidemiological studies. Therefore, the preventive mechanisms used in medical field can be applied to a road accident during pre-crash, crash and
post-crash situations.
Traffic and safety management
Traffic management can be defined as the : effective utilisation of available road space to improve traffic flow and safety. The main objectives of traffic management are to;
- Economic Review; Aug/Sept. 2011
minimise de capacity, imp security, give p traffic and min Safety managem incorporated
development wo
operations to ir
standards. Th
minimising los injuries, prope financial, env societal losse managing transp mostly due increasing veh world where the
vehicles ofter provision of roa countries.
Safety systematic
8.8
increases the ch safety goals by opportunities
safety are ident implemented as
evaluated in all planning, d e s i g in , construction, maintenance,
a. d
operations.
The level of
attention to
the safety
1 6C 8 S U 1 6C S
should be
decided based
on the three
risk elements; the probability of accidents, the level of exposure and the magnitude of the
consequences. Maintaining an acceptable level of risk
Ca be

lays, increase ove safety and iority to selected imise emissions.
ent tools could be
in the road Irk and transport nprove the safety is will result in
s of human life, rty damage and ironmental and
s. The need for
bort demand arises to the rapidly icle fleet in the
increase of motor outstrips the d space in many
genernt is a which Lances of reaching ensuring that all to improve road
DTOCCSS
ified, considered,
a chieved safety performance indicators and safety performance targets.
through
Safety management could be implemented through safety programmes and safety management system. A safety program is an integrated set of regulations and activities aimed at improving safety. A safety program has a broad scope and includes many activities aimed at achieving the program objectives. A safety
management system is an
organised approach to managing
safety. It usually includes necessary organisational structures, accountabilities,
policies and procedures.
Approachaeв to traffic
management
Traffic can be managed through engineering design, through
appropriate, and enforcement and through phases of highway education.
O Traffic Management System
A.
V
Approximate Analysis Modification
Economic & Envi. Impact ba
Analysis
4M AfA
Field Trial r ܐ
Implementation
Figure 2 A flow diagram of evaluating a
traffic management plan
17


Page 20
iDesign includes; intersection designs,
medians, islands, cycle paths, pedestrian paths/ malls, bus bays/ parking bays, street lighting, road
geometry, road surface and drains.
Enforcement can be either manual or physical. Manual controlling consists of parking control, land use control, speed control and turn prohibition. Physical controlling includes road signs, lane markings, barriers, pedestrian crossings, one-way roads and road closure. Education includes, driver training, training schoolchildren, advanced training of professional drivers, public awareness
and public participation.
Any traffic management systern should be properly evaluated before
The
methodology (Figure 2) could be used
implementation. following
to ensure the effectiveness of any traffic management system. A sound knowledge in traffic engineering theories is approximate analysis.
required for the
Evaluating mitigation options
All risk mitigation measures may not have the same potential for reducing risk. Therefore, it is necessary to evaluate options available prior to implementation. These options could
be evaluated with respect to
effectiveness, cost/benefit, practicality, challenges and acceptability, enforceability,
durability, residual risk and possible new problems. Preference should be given to the measures that could contribute most towards eliminating risk.
Road design
Proper road design is vital for the
success of effective traffic management. Road Safety Audit is one of the tools that could be used to
improve the safety standards of a road
design. Road formal and inc
a proposed de safety team to modal safety design.
The main objec a road safety a the whole of
project, ΙΥ construction
consider the
users, minir. collision-proc provide injury. at suitable lic
suitable C
elements and
does not impac
roads.
A report iden concerns wi
quantifying the of the relevan 1
and suggesting for consider
outcome of a ro responsibility is making recommendatic
tean gets all outlining h recommen dat
addressed.
When using ( steps should b the desirabl
standards.
combination
contribute to
situations with
Age of the sta factor that sh
in road design
Safety durin stage
During the ope conflict study"
18

safety audit is a ependent review of sign by an expert
assess the nulti
performance of the
tives of carrying out audit are to reduce
life costs of the
inimise postremedial work, safety of all road nise preventable lucing elements, reducing elements bcations, include ollision-reducing ensure the project t safety on adjacent
tifying any safety
th the
safety implications
design,
t design decisions, g safer alternatives ation will be an
ad safety audit. The of the safety team documented
ins. Then the design n opportunity to ow the safety
ions are being
lesign standards, e taken to evaluate
e vs. minimum
Further, the of standards may wards conflicting h respect to safety. Lindards is another
ould be considered
S.
ng the operation
eration stage "traffic technique could be
used to evaluate the safety condition at a given location within a short period of time. Here,
it is assumed that the serious
conflicts are proportional to the type of traffic accidents, and the
identification of conflicts can be
used to understand the potential safety issues without waiting for accidents to happen.
Based on the results of conflicts
studies, one can identify the appropriate traffic management options for a given location. However, it is important to monitor and evaluate any traffic management option to be implemented as residual problems could arise due to unexpected and
random behaviour of road users.
Conclusion
Road safety management system is a useful tool to improve the road safety standards. Success of a safety management system will depend on the attitude of the management towards safety, safety cultures developed within organisations, reporting, analysing, training and monitoring mechanisms used in handling safety. Understanding traffic flow behaviour and knowledge on traffic management measures are required for the successful implementation of road safety
management system.
Contact details
Saman Bandara
Professor in Civil Engineering University of Moratuwa E-mail: bandaraQuon.lk Telephone: +941 12650567
(ext. 2129)
Economic Review: Aug./Sept. 2011 -


Page 21
Reduction of Tra Colombo City by In
Transport
Abstract
hemotorisation uvithin Colombo
city has increased uith the
increase of travel demand as many people refrained from using public transport mainly due to its inefficiency and poor quality. Houvever, the increased motorisation has lead to many negative implications such as congestion, environmental pollution, road accidents, etc. Thus introduction ofan efficient and high-quality public transport system capable of attracting private vehicle users has become an urgent need. This paper examines prevailing passenger transport demand, draubacks and viable improvements required to the existing public bus transport in Colombo city.
Colombo City and its Transport System
Colombo is the largest city with an area of 37 km and commercial capital of Sri Lanka with a city population of 647,100. Although the city limits are defined by the Colombo Municipal Council (CMC) boundary, its economic activities spread over Greater Colombo area which extends Kadawatha in the north, Kaduwela in the west and Moratuwa in the south.
It is also the centre of the economy in Sri Lanka as the major government and private offices, factories, hospitals, hotels, schools and a harbour are located within the city inducing a large daily regular travel demand towards the city. It also attracts a large number of irregular travellers since it links all parts of the country by keeping country's major road and rail passenger transport node within the centre of the city. Therefore, most of the passengers travelling
- Economic Review: Aug/Sept. 2011
between the wes
rest of the count
touch the Color journeys.
Colombo has an
transport system The bus service it private and gove Lanka Transpo. Train transport limited, carrying since most trail
transport to ar rather than with:
often over crow
bus stand and
station function primary hub f transport resp means of transp wheelers and t
wheelers are en'
individuals while run by private c metered.
Travel Denand
There are 10 ma to Colombo cit
number 750,000 peopl arrive in the cit
by road i 200,000 vehicle daily. Of thes 11,000 are buse and 15,000 a goods vehicle: Presently, aroun 15% of the roa space is utilise for bus transpo even though
transports 62% road passenger

ific Congestion in nproving Public Bus
tern part and the ry have at least to mbo city in their
extensive public
based on buses. s operated by both rnment-owned Sri rt Board (SLTB). within the city is mere 10% of trips, ns are meant for hd from the city in the city and are ded. The central the Fort railway h as the island's
or bus and rail ectively. Other ort includes three axi cabs. Three tirely operated by 2 cab services are onpanies and are
Management
jor entry corridors y. An estimated
f
W. Janaka Weerawardana
PhD Student Department of Transport and Logistics Management University of Moratuua Sri Lankcaz
On the other hand, 65% of the road space is used by private and hired vehicles which carry only 38% of the passengers. Figure 1 shows the composition of city entry traffic flow and passenger share of each
vehicle type.
All city entry corridors experience two major traffic peaks in the morning and afternoon. Obviously, school trips and work trips and jointly create the morning peak during 7.30 am to 8.30 am towards the direction of the city while the return school trips and work trips create congestion towards city outbound direction during .30 pm to 2.30 pm and 4.30 pm to 5.30 pm respectively. Typical representation of traffic flow on Colombo-Negombo is shown in Figure 2.
e
து Bus Utility 28% Large Bus 4% s (15 of Passengers) (62% of Passengers e incl minibus
s s Motor Cycle 18% e (6% of Passengers)
S. d 3 wheeler 19% d (5% of Passengers)
d Car Saloon 29%
t (12% of Passengers) it
Figure 1
Vehicle composition and passenger
of share of each vehicle type at Colombo S. Municipal Cordon
19


Page 22
Figure 2 clearly illustrates that the peak period congestion is purely created by private passenger vehicles such as motorcycles, three wheelers, cars and vans as their flow is always close to the total vehicle flow during the day. Therefore, congestion management should focus on reducing passenger vehicle entry to the city or else providing an adequate road way capacity for them.
Road capacity improvement is always a popular solution for mitigating traffic congestion. However, the road infrastructure in Colombo city and its suburbs cannot be further widened or new roads cannot be built to match with the rate of demand created by people who are shifting from public transport to private transport. The inability to obtain the required land for road space, parking spaces, etc. are fast becoming constraints, severely restricting the flow of vehicles exceeding the capacity of the road system. As a result, around 70% of the length of the national roads within the 10 km radius from the city centre is congested throughout the day.
Although restricting and discouraging using private vehicles especially during peak hours are considered as effective measures in traffic demand management, such intervention would not become popular unless good public transport system is ensured in the first place. Improvement of service quality of public transport would be another measure for attracting private vehicle users as they like to pay for their comfort. However, poor operational features associated with public bus transport at present will not encourage such modal shift.
Present status of Public Bus Services
Colombo city is served by provincial and inter-provincial bus services operated by private- and State-sector buses. Individual operators in the private sector provide inter-provincial and intra-provincial services under the supervision of National Transport
Daily Traf
600 1500 Psass 1400 *
1300 to 1200 1100 1000 900 800 700 600 500 400 300 200 100 O
i
Figure 2 Tr
Commission
Province Pass Authority resp Lanka Transpor as the State-se provides both ty
The following
associated with transport at p people to go aw
i. Overloading Although the o move from low-o high-occupancy last few decades and public sect not been able to travel demand, the peak perio indicated in Fi factor (demand, buses operatir corridors stay ab of the day and e the peak period
In addition
increase, high behaviour of t operators has overcrowd their creating unplea for the passeng generally occul bus stops resu journey unne increasing pa: capacity would r
20
 

c Flow Wariation on Negombo Road at City Entry
(Both Direction)
enger Vehicle
und) enger Vehicle bound)
d ܕܐ ܬܹܗ d ܒܗ om
LMSMkS SS LSS SSS SSS SLSSS SSS qqSSSS SS SS SSSS S LrMS S S
and Western enger Transport ectively. The Sri t Board functions ctor operator and rpes of services.
key weaknesses h the public bus resent make the ay from it:
and lingering: perators tends to ccupancy buses to
buses during the , still both private or operators have handle the growing
especially during is of the day. As gure 3, the load (supply) of public ng on major city ove 1 for most part xceeds 1.5 during
S.
to the demand ly profit-seeking he private-sector
made them to buses in each trip sant experiences ers. Overcrowding s at intermediate ilting in delaying cessarily. Thus, ssenger carrying lot become effective
on Bus(lnbound) a - Bus(Outbound)
S SS SS SSS S SSS S LSMS S SS SS SSLSS S
Economic Review: Aug./Sept. 2011
«88, Frieghalnbound Total (Inbound)
soccer Frieght(out bound) ---Total (out bound)
" ཚོ །
- - سح
SS SSSSS S SLS S SSS S LSSS
variation along Parliament road
unless it is supported by proper regulatory and monitoring framework.
it. Inefficient orientation of city services: At present, buses from 166 of inter-provincial routes and 98 of intra-provincial routes enter the Fort and Pettah area daily. Among 98 intra-provincial bus services, 95 uses the bus stands in Fort and Pettah area as their one end of the route while other three routes just touching the area. Arrangement of intraprovincial bus service in Colombo city is illustrated in Figure 4.
Both inter- and intra-provincial bus routes within the city limits are arranged in a radial network concentrated towards the Fort and Pettah area. Such arrangement leads to overlapping of a number of routes on a single corridor, particularly close to the city centre. Overlapping of routes reduces the overall efficiency of the network and also increases the traffic congestion while leading to higher fuel consumption and emission especially during the peak periods.
tli. Detouardrug for passengers: As mentioned earlier, orientation of the bus routes within the Colombo city is almost a radial network with minimum distributional routes. Sixty six (66) routes are operated between Fort/Pettah and out of


Page 23
Colombo while only 2 routes between Fort / Pettah area and rest of Colombo Municipal Area. As a result, trip length and the travel time of bus pas se ngers in crease compared to the private vehicle users since, most of the time, bu s passengers have to travel up to city centre to transfer to a bus which runs to their anticipated destination. The increase of trip length of bus passengers also causes overcrowding of the buses as the passengers
:
cd (")
Wariation of L
ཏྲེ་
秀
གྱི་
출
སྤྱི་
have to occupy the buses for a longer duration until they reach their destination.
iv. Poor integration betuveen longdistance and short-distance services: Generally, interprovincial services do not intend to serve city while they are carrying passengers from outside of the province to the major terminals in Pettah and Fort. On the other hand, there are no proper transfer points to get their transfers to city service along the major corridors on which long distance services are operating. Therefore, such travellers coming outside also have to travel up to city centre or a near-by city centre to transfer to a city service.
Besides long distance bus services, rail also carries distant passengers from outside the city. None of railway station, at present, has been linked properly with a bus terminal to provide convenient transfer to a city service. Therefore, most of passengers, especially travelling on Puttalam and Kandy rail lines have used to come to Maradana and Pettah stations all the way in their journeys. Even the southern railway line passengers cannot have an easy transfer to a city bus service until they reach a near-by
- Economic Review: Aug/Sept. 2011
Figure 3 Typical variat
city centre sta Bambalapitiya ( there is no any o terminal before
Bus and rail pas conducted by t Moratuwa (UoM) that the intentio)
passengers an passengers arrivi Fort and Pettah local services as
integration of lo and rail services at any other bus
within city limit
In addition, trans distance servic frequently happ Pettah since services are als the terminals centre. Therefore of passengers ul the city merely continuing theil interview con reveals that 53% and 37% of rail to Fort/Pettah \ of transferring t of the Western F that there is decentralise lo services.
 

iad Factor, Parliament Road, Rajagiriya
mnbound
s
i
s
SqSqqqqqS S LSS SSSSS SLSSS
cion of load factor
ations such as or Kollupitiya as ther close-by bus then.
senger interviews he University of in 2007 reveals in of 43.2% of bus di 46,9% df rail ng in terminals in
is to transfer to there is no proper ng distance bus with city services and rail terminals
S.
sfer from one long*e to another is 2ning at Fort and inter-provincial concentrated in in Colombo city 2, a large number nnecessarily enter or the purpose of trips. The same ducted by UoM of bus passengers passengers come vith the intention o a bus going out rovince. It reveals a demand to ng-distance bus
at Rajagiriya on Parliament road
v. Poor service delivery: Besides overloading, the other key factor which takes high income group of passengers away from public bus transport is mental and other physical harassment inside the buses. The discipline-lacked bus crew often used to talk to passengers by harsh words and also they try to manipulate standees viciously. Noisy environment, abruptbreaking and turning also fed up the passengers enormously. Further, road revenue conflict among operators adds higher degree of contribution for the traffic congestion and accidents as well.
Measures for Improvement
Due to the continuous deterioration of the quality of public transport during the last few decades, it has been noticed that more and more passengers have been shifting from public nodes to private modes and also some of them have been migrating to the city proximity to minimise the use of public transport for their travelling purposes. Such tendency has caused increasing the private vehicle fleet and the cost of living of people residing in Colombo
21


Page 24
Metropolitan Region as most of them are daily Colombo city commuters. The household expenditure survey conducted by the Department of Statistics and Census in 2007 reveals that the people in Colombo Metropolitan Region spend higher amount of their earnings for housing, education and transportation compared to those in other provinces of the country. This indicates that public transport requires urgent reforms at present as an alternative intervention to reduce living cost.
Based on the worldwide practices and the country's own experiences, the following short-term and longterm interventions can be adopted for alleviating the above-mentioned shortcomings in the bus transport service:
Short-term interventions
i. Prent un seruices: Premium service is a luxury bus service targeting at high-income group of city commuters. Its main intention is to reduce the number of private vehicles which are having greater impact on traffic congestion especially during peak periods entering the city. Almost all private vehicle trips during peak hours are home-based trips and around 65% of them are home-based work trips. Such luxury service can be targeted at these regular travellers during the peak hours while the same buses can be operated for city shuttle service during the day time for official and business trips which also make local peaks. The high reliability and comfort of these services will be able to capture the targeted group of private vehicle
USCTS.
Due to the high quality of the service, operator has to charge higher fare than that for other public transport modes. As a result of higher fare, these services would not be able to capture the working population who are using public transport mode at present. A survey conducted covering several institutes in Colombo city revealed that, though present public transport users are interested in premium service, their "willingness
22
Figure 4
to pay” for suc compared to the vehicle users.
services are lim" business trip . presently using
vehicles for thei
Generally, thes be started cl( boundary wher starts to build up facilities needi ti private vehicle u vehicles at the te to such pre Preliminary ir passenger behav Kadawatha, JaE Moratuwa are sti locations to star
til. Developmerut and overflow g terminals have tc modern facilitie and proper inf systems. Such iu also include facil as well. Termil should have
management plau annong pas Sen within the ternir in the vicinit Gunasinghapura and Central Bu { station will con the people on s and Pettah ar. comfort transfer
Overflow parks developed in development o
 

unitiational Western Province
. . . . . . . . . , Colombo District . . . . . . . . . . . . . . six : x : x
:※ a is . . . . . . . . . . CMC a s . . . . . . . . 滲
خھ2 等 w 豪 s هی-سسسسس : 海 爵 海 & 黎 漫 逢 རྩི་ལ་ལ་བཤད་ག་ལ་ཨ་མ་དག་སྐྱོ་ * t t t e Fort/Pettah ※ < 影 3
以影 领 భళ 事 orakwi· 腺 ਅਲਲ
喂 轰 翁 刘
A s 金 湾、 遜 参考 ~ 嫌 券 海 嫌 S.
h de 德 雛 褒 渗 ܗܝ ܀ & ukidhiriadakakudhiaidh 薇 شس
atra-provincial bus services serving Colombo district
and Colombo city
h a service is low
private and hired
As such, the se ited for work and makers who are private and hired r travelling needs.
e services should pse to the city e the congestion p and also parking o be provided for sers to park their rminal and switch
These parks should also be located in close proximity to the bus terminal with proper connectivity and communication with the terminal. If these overflow parks are located in reasonably away from the terminal, there must be a specific traffic arrangement plan for the movement of buses. This will reduce the un necessary bus circulation within the city and consequently smoothing the traffic flow.
iii. Rail-bus coordination: As discussed earlier, majority of rail
mium service.
nvestigations of passengers now have used to come iours revealed that up to Maradana and Pettah to la, Kaduwela and transfer to city service buses as rategically suitable there is no proper connectivity
“t these services.
between rail and bus before then. Although places like Dematagoda,
of bus terminals a - parks: Major bus Kollupitiya and Bambalapitiya are be upgraded with having close-by rail station and bus
is for passengers ormation display Interventions must ities for bus crews nal designs also proper traffic in to reduce conflict gers and buses hal and congestion y. Inter-linking , Bastian Mawatha s Stands and rail siderably reduce treets in the Fort ea while having s to then.
should also be parallel to the f bus terminals.
Economic Review: Aug./Sept. 2011
station, there are no bus services covering rail passenger-desired destination at required frequency. Therefore, introducing coordinated bus services for rail passengers especially during peak hours would eliminate the congestion in the city centre bus terminals and stops. Related infrastructures such as terminals, parking places, waiting areas and information display systems also need to be included for such integration mechanism.
iv. Improvements to service dellvery: Operational and nonoperational interventions are required to improve the services. Introducing timetables which


Page 25
eliminates road revenue conflict and un necessary lingering at intermediate terminals and stops is a priority at present as an intervention for improving operational aspects of the public bus transport. For the effective functionality of such timetabling
program, it is necessary to strengthen the prevailing regulatory and monitoring framework also. Further,
introduction of high-capacity, buses for city services will also improve the operational quality of the services. Generally, now operators tend to shift to highcapacity buses as a result of relaxed taxation policy and concessions on high-capacity buses.
Training of bus crew for improving their public relation capabilities and professional skills are currently in progress with the National Transport Commission for inter-provincial buses. But, it needs to be strengthened to benefit the crews in intraprovincial services as well. As a part of this program, a code of ethics for bus operators is also needed to be introduced.
Long-term interventions
it. Re-plar ring of bus route retuork. As the Colombo city and its suburbs have undergone a significant land use changes during the last few decades, it is necessary to re-plan the existing bus route network to cater to the resulting change in passenger demands. Although, introduction of minor modification to the network for catering to the localised demand variations can be fairly effective in the short term, it is essential to conduct a total network analysis leading to complete revision to improve the performance of the overall network in medium to long-term basis. Such re-routing program should focus on the following aspects:
i. Minimising transfers by providing direct routes connecting potential trip generators and attractors
- Economic Review: Aug/Sept. 2011
ii. Designing sev routes to minimis city centre
iii. Minimising overlapping routes on city corridors
iv. Increasing the routes connecting make travel dista consequently to m: of passengers
v. Related developments such and stops
vi. For the succes planning, it is es required level of p capacity and prepa schedule for the s
As route network a planning and intervention, it minimum leve investment.
ti. Bus Rapid Tra Transit (BRT) is a based transit sys fast, comfortable urban mobility provision of segreg infra-structure, ra operations, an marketing and c BRT essentially performance
characteristics o based transit s fraction of the co will typically cost than a light ra system and 10 t than a metro sys
BRT meeds to between potenti and attractors operating such s outside the city a commercial and centres within t worthwhile. The connecting Kada Maharagama to Battaramulla wou However, plannir should be carefu
proper assessm demand and all dedicated right operation.

eral city by-pass e transfers at the
the number of o avoid congestion
number of cross to radial routes to ince shorter and nimise travel time
infrastructure as bus terminals
s of bus route resential to assign assenger carrying refine-tuned time
ervices.
revision is almost
administrative needs only a l of financial
Insit: Bus Rapid high-quality bustem that delivers and cost-effective 7 through the gated right-of-way apid and frequent i excellence in ustomer service. y emulates the and an enity f a nodern railystem but at a st. A BRT system 4 to 20 times less il transit (LRT) o 100 times less teno.
pe operated inal trip generator s, and hence, ervices from just und drive towards i administrative he city would be erefore, services watha, Pandaura, Fort/Pettah and lld be appropriate. ng a BRT network ully handled with ent of passenger bility to acquire t-of-way for the
iii. Developing public transport services utth. Park and Ride: Park and Ride systern allows people to park their vehicles and switch to the public transport. BRT and re-routing should become more effective as they are coupled with Park and Ride System. Such park and ride systems should be promoted outside the city where BRT and other major bus routes are started.
Conclusions
The poor performance of the public bus transport has become a major reason for traffic congestion during peak hours in Colombo city. The orientation of bus route network does not match with the passenger desires, and hence, leads to waste of thousands of man hours besides excessive use of infrastructure and limited resources such as fuel. In addition, poor quality of service delivery also takes people away from public transport and shifts them towards private transport nodes. Such shortcomings associated with public bus transport can be eliminated effectively through several shortterm and long-term interventions.
References
Institute for Transportation and Development Policy (2007). 'Bus Rapid Transit Planning Guide", USA.
Kumarage, A.S., Weerawardana, W.J. (2009). "Research on Greater Colombo Traffic Management", Ministry of Transport, Sri Lanka.
Kumarage, A.S., Weerawardana, W.J., Liyanage, U.L. (2010). Reuleu of Sri Lanka. Transport Sector", World Bank,
Pai, M., and Weerawardana, W.J. (2009). "Study on Bus Rapid Transit for Colombo City", Ministry of Transport, Sri Lanka.
Footnotes
Research on Greater Colombo Traffic Management, Ministry of Transport, Sri Lanka, 2009.
Bus Rapid Transit Planning Guide,
Institute for Transportation and Development Policy, USA, 2007
23


Page 26
Improvement of t! Transportation of Sri
Introduction
T。 total volume of freight in Sri Lanka in the year 2010 included 1 O9.43 million tonnes of agricultural produce, 6.2 million tonnes of industrial outputs which are exported and 20.4 million tonnes of imported commodities (motor vehicles and other commodities). Ninety eight percent of this freight uses the road network while only 0.8% uses the railways. Coastal shipping accounts for the balance. The average per capita freight in the year 2010 was 6.2 tonnes. The per capita consumption of all commodities has increased from 3.1 tonnes in the year 2000 to 6.2 tonnes in 2010. The mid-year population in the year 2010 was 20.6 million with Gross Domestic Product (GDP) per capita of US$ 2,399°. The freight transport demand is determined by the surplus of production in a given region and consumption items which are not produced within the same region. The total freight flow consists of surplus production in a given geographical area and the consumption items coming from other regions. A macro-economic forecast of the country has indicated that per capita GDP will be doubled (i.e., US $ 4,500) in 2015 with the expansion of the economy by
increasing total 25% of the GDP tt three years. Th sectors such as ti (airports, seap railways) and increased by 9% growth provide a 16% high growth sector. Further, inputs from the sector and its ol
Thes
activities will in high freight flow. on supply chain i that the growth always 4% to 5% growth of GDP". if the Sri La sustained a GDP annum during ne freight flow wi. minimum of 12%
increase.
Salient Featul Transportation
The total freight in the year 2011
129.831 million t 2.9 million tonne food item of t population is
Y COSU) Graph 1- Growth of Active Truck Fleet Count gags expor 140000 weigh 20000 303 g8. - TrucksDiesey tonne 60000 The fi 40000 o rigiη 2000 CO
reg1ol transp Figure 1 Growth of active truck fleet from ''
1983 to 2011 in Sri Lanka COSU Source: Revenue Licence Data from District is call Level and Author's Calculation was f
24
 
 
 
 
 

he Inland Freight
Lanka
investment from 34% during next e investment in urism, transport rts, roads and ou sing will be to 10%. These path for 10% to in the costruction
the demand for manufacturing utputs will also e development fluence to have Empirical studies n Sri Lanka show of freight flow is higher than the This implies that nkan economy growth of 8% per xt five years, the ll expand by a
per annum.
res of Freight
Market
low of the island was estimated at onnes. Annually, s of rice, the main he Sri Lankan produced and med within the ry. The main t product, in t, is Tea. It hted to 331, OOO in the year 2010. eight transport ated in the odity-producing S and orting to regions
nodes for mption or export ed freight flow. It und that 99% of
Economic Review: Aug./Sept. 2011
Dr. Don S. Jayaweera
Director General Department of Development France Ministry of Finance and Planning
this freight flow of the country uses the road network. The highdemanding regions are those with high population such as Colombo, Gampaha and Kandy. Studies show that tea, rubber, and coconutproducing districts are not doing value addition and packaging in the same locality, but are transporting bulk to other locations of other regions. Most of these activities are located in the Industrial Zone in Katunayake in the north of Colombo. The theory of transport is that transporters choose the shortest path for freight transport. But, it was found that 60% of consumption items coming to the western province of the country is not using the shortest path. The total freight volume coming from other region to the western province is 77,899 million tonnes. This includes the all imports of raw material and consumer items. The active truck fleet of the country as at June, 2011 is 162,000 of which approximately 65,000 trucks are 2axel or more. There was a rapid growth in the active truck fleet sinçe 2009 as shown in Figure 1.
Total consumption of the country amounted to 30.158 million tonnes of all food items, and 3.4 million betel leaves, 39,4 i 2 oranges, 132,000 mangoes, 41,000 bread fruits, and 41,425 pineapples in 2009/105. The regional distribution of consumption (weight of all items other than fruits) shows a high freight flow to and from the Western province of the country (Table 1).


Page 27
As shown in Table 1, only 20% of consumption was in the Western province while 60% freight flow was originated or passing through the Western province. The main export earning of the island was from apparel industry which amounted to US$ 3.5 billion. The apparel industry acquires most of its input as imported raw material and makes 60% value addition to them. Large majority of these raw materials are being transported to the factories located in regions which are located out side the Western province, and finished products are brought back for packaging and export through the Port of Colombo. The second highest export commodity is tea which also has its value addition and packaging in the Western province and is exported through Colombo sea port.
Growth of Freight Market with Economic Growth
The economic growth of a country has very high correlation with freight. The correlation between growth of GDP and growth of freight flow for Sri Lanka is shown in Table 2. The correlation coefficient between the GDP growth and growth of freight flow was estinated at 0.967.
It was found that the total freight flow of 24 commodities including consumer and production items of the country is 8,828 billion tonne kms in 2011. This freight flow has generated a considerable truck kms as shown in Table 3.
The economic development plan of the government envisages the expansion of exports, construction and agriculture The importation of consumption items and raw material for the following development activities has targeted at 6%-9% growth during the next five
years: • i. Construction of 45,000 new room capacity for the tourist industry
nedium-term
industry production.
- Economic Review: Aug/Sept. 2011
ii. Investment c annually on roac
iii. Investment ( on the constrl housing
iv. Development port and aviatio the region for vi processing
v. Investment on zones such as Hambantota
vi. Development high-end tourist next four years.
This economi scenario of the
increase the tot average of 14% may be instanc growth of the to
20% in som: construction generates mc increasing travel Table demand due to I Dist t h e il Colo diversion Gam of the Kalu existing | Kanc t r a f f i c || Mata f r o m || Nuw o the r Gall routes. 7 || Mata Thus, Han with the Jaff opening Vavl of the sour. Southern 2009, expressway in this
year may generi may also shift the coastline to to be monitc transport strat freight cost.
This will increa by about 14% a term increase of years with the 1 on constructio end of this year,

Rs. 200 billion construction
f Rs. 100 billion ction of urban
f Sri Lanka as the services hub in lue addition and
special industrial Trincomalee and
of Sri Lanka as a lestination during
c development government may all freight flow by per annum. There es of short-tern tal freight flow by e years. The of new roads re traffic by
way will be opened for traffic which has an impact on generating additional truck kms, shifting traffic from other modes such as railways and coastal shipping.
Table 4 clearly illustrates that 57% of trucks fall into the small lorry (LGV) category and only 43% are medium and large truck category within the Colombo area. Therefore, this traffic highly contributes to urban traffic congestion. The freight transport should congestion,
contribute to
accidents inefficiency on the usage of the
1rn O t
and
urban road network. Therefore, considering the fact that freight transport is the backbone of economy, an alternative mode has to be mobilised with necessary infrastructure, if the country is aiming at achieving its economic growth targets.
Total consumption by districts
(all commodities in tonnes) rict Weight (t) District Weight (t) mbo 3,110,352 12. Batticaloa 714,204 paha 2,834,532 1З. Аmpara 1,038,912 tara 1,653,582 14. Trinconalee 542,198 ly 2,059,281 15. Kurunagala 2,542,545 alle 785,669 16. Puttalan 1,046,257 ara Eliya | 1,248, 472 17. Anuradhapura|| 1,373,979 e 1,586,131 18. Polonnaruwa 738,024 3. 1,357,448 19. Badulla 1,504,362 bantota || 1,071, 198 20. Monaragala 867,885 al 634,445 21. Ratnapura 2,000,334 niya 197,162 22. Kegalle 1,252,092
e: Household Income and Expenditure Survey (HIES), 2010, Department of Census and Statistics, Sri Lanka
te new traffic and he rail freight on the road. This has red to identify 2gies to minimise
se the freight flow nnually with short20% for next three oom of investment . Further, by the 115 kms of express
Impediments to the Freight Transportation and Intermodalismo
A review of government policies and strategies indicates that impediments for the supply chain process have not been addressed in the government policy framework . This was the case during the last two decades too. Therefore, it was disadvantageous for our products to fetch a
25 -ത്ത


Page 28
Table 2 GDP (in '000 US S) and freight flow
('000 tonnes) from 1982 to 2010 in Sri Year GDP US $ Freight Year GDP US $ F. Τον Fl 1982 4,768,765 24,864 1997 15,091,930 5 1983 5,167,913 25,032 1998 15,794,972 6 1984 6,043,474 26,002 1999 15,656,342 6 1985 5,978,460 29,456 2000 16,330,810 7 1986 6,405,210 31,976 2001 15,746,224 || 6 1987 6,682,167 34,182 2002 17,102,623 7 1988 6,978,371 33,764 2003 18,881,765 8 1989 6,987,267 32,602 2004 20,662,525 8 1990 8,032,552 35,980 2005 24,405,791 9 1991 9,000,362 36,705 2006 28,281,012 1) 1992 9,703,011 37,870 2007 32,357,034 12 1993 10,338,679 39,508 2008 40,714,178 1C 1994 11,717,604 42,424 2009 42,065,425 1C 1995 13,029,697 43,809 2010 49,548,912 9 1996 13,897,738 47,645 Source: CBSL, Sri Lanka and Author's Calculation on
Flow based on data from Department of Census and St
competitive price in the global market and to reach the market at appropriate time.
transportation and the USA m. highly compet
The kಣ್ಣ Table 3 Operated truck kms, freigl ဗုဇsဖူး O from 2007 to 2010 t he Description 2007 freight Ο d k/1
t perate truck/lorry kms || 1,410,904,656 is the Freight volume ( tonnes) 120,764,620 use of Freight flow (tonne kms) 7,728,935,706
al Source: Author's calculation based on traffic
consumption of Department of Cens Of the
freight and the rail mode only for 1%. This has contributed to urban traffic congestion and road damages as a result of over loading of 2-axel vehicles. All Sri Lankan roads are having a designed axel- load capacity to allow transport of freight vehicles. The trucks used by the freight transporters in the country are overloading without adhering to the specified axel load designed by the truck or lorry manufacturers causing damages to roads. This is an “inefficient" and "un-economical" use of roads. The overloading can be observed in the majority of small and 2-axel trucks. The import duty and other taxes applicable for the importation of trucks do not encourage the multi-axel trucks to be imported by the freight industry. This impediment has been removed by the budget proposal of 2012.
The inter-modal transport meants the integrating all modes of transport in
26
global and lo Lanka has not a key priority a Lanka the S Authority whi container yard The land transp left freight tran decide by the . even up to now or instruments with a clear
freight transpo
The Asian Dev provided some t to identify and of logistic cent match with the development
impediments
transportatio comprehensit considering th middle-income

t h e Lanka su pply eight C h a in OV depending 9,043 on the 9,424 transport 8,043 6,239 cost and 7,043 reliability. 9,760 A low1,243 c o st 7,237 su pply 5,870 chain of O,340 w 20,765 freight 7,150 transport 2,904 has been 7,427 developed
w i t h Freight in t e r - atistics mo da 1
freight systems in Europe laking their exports
itiveness in both
dry ports/logistics centres have illustrated the reduction of traffic congestion in urban roads due to freight traffic originated at sea and air ports by reducing the fees and charges on shippers for the freight transport.
There is a stimulated package or road map to develop freight transportation supply chain which has to be evolved with inter-nodal transportation. This has been recognised by the National Transport Policy of 20099. However, current projects and programs of the transport sector are not in line with those mentioned in this policy document. Further, it is observed that comprehensive transport strategies indicated in the “Moahinda Chinthana Idiri Dakna” policy document have not been
ht in '000 tonnes and operated freight tonne kms
2008 2009 2OO 1,290,964,752 1,277,377,868 1,209,393,793 107,150,074 102,904,058 97,427,341 7,071,904,911 6,997,475,958 6,625,059, 197
data, fuel consumption and data on production and
us and Statistics
cal markets. Sri considered this as rea, other than Sri Sri Lanka Ports ch is looking for for their functions. ort authorities have sport completely to market forces and, any economic tool have not been used vision to develop rt in the country.
:lopment Bank has echnical assistance develop a concept re, but it does not country's economic program. The for freight
have to be rely addressed e needs of a lowcountry. The Dubai
taken into consideration in any implementation programs of the transport sector due to high concentration O micro operational aspects such as routine maintenance of government own buses.
Main Issues of the Freight Transportation in the Island
The main issue related to the freight transport in Sri Lanka has been identified through the analysis of mode of transport, origin, destination, axel loads, fleet characteristics, regulatory regimes and demand for freight transport. The main issues are:
i. The total freight transport market has grown by 7.5% during the last ten years. The road haulage has accounted for 99% and the share of railway has been less than 1% of the freight market
Economic Review: Aug/Sept. 2011 -


Page 29
which resulted in increasing the transport cost.
ii. Unguided investment on supply chain infrastructure such as warehouses, processing centres, and container depots
global market al wastage of res reduces the pric of the freight system in Sri L following recomr
Table 4 Contribution to urban traffic congest
Light Station Car goods
vehicle Mattakkuliya 2,244 1,032 Japan-Sri Lanka Friendship Bridge 10,482 5,132 New Kelani Bridge 31,704 17,518 Sri Lanka Land Reclamation and 47,295 10,038 Development Corporation Wellanpitiya Bridge 3,392 2,153 Kirulapone Bridge 27,849 б2921 Near Ayurveda Hospital 7,351 3,752 Pamankada Bridge 21,075 5,206 Dehiwala Bridge 30,639 8,342
Source: Primary data from RDA and author's calculation
iii. The growth of economically inefficient rolling stocks of road freight transport, where 57% of road truck fleet is small truck and only 38% is medium and large trucks.
iv. Non-availability of economic instruments to invest on supply chain infrastructure by the private sector as no clear policy interventions have been evolved by the policymakers.
v. Ad-hoc regulatory regimes by several institutions including the Department of Motor Traffic, Department of Police, etc.
vi. Non-growth of third party suppliers of freight transport because there is no organised structure due to nonidentification of the importance of the role of third party suppliers within the supply chain by the policymakers
vii. Overloading of trucks, specially two-axel trucks and use of roads sections by some trucks which are not designed for heavy loads.
Making a Competitive Freight Transport System
Efficient freight transportation system will create high competitiveness for exports in the
- Economic Review: Aug/Sept. 2011
economic develc the government a
i. Revise tax s importation of equipment such lorry and truck should be productivity o equipment, road by such vehicles consignment.
ii. Identify appropriate loca establishing logi to railways, roa airports.
iii. Reform the la integrating th circular road, highways for frei nodes to minimi country.
iv. Identify a technical input specifications fo norms for freigh the Island.
Conclusion
The efficiency a a freight trans fundannental

ld will reduce the jources thereby es. This analysis
transportation anka makes the nendations, if the
economic development of any country. The vision of the government of Sri Lanka to double its per capita GDP by 2015, from US$ 2,399 to US$4,500 may not be materialised if an appropriate freight transport system is not
ion by the freight transport in Colombo city
Medium Large 3 Medium Bus capacity bus Wheels and large
lorry trucks 38 3,070 11 2,541 88 718 8,626 2,606 9,371 7,689 2,356 19,290 7,841 12,139 5,258 33O 17,501 330 14,407 4,444
278 6,797 2O76 8,505 3,278 362 13,422 4,094 11,854 3,136 858 6,819 5,053 7,235 2,195 530 9,244 1,502 9,084 4,799 1,350 11,699 5,378 16,572 1,448
opment targets of are to be achieved:
tructure for the freight transport as prine novers, is. This revision based on the f the transport damages caused and the cost of a
and designate tions of areas for stic centres close ds, seaports and
and use policy by e Colonbo outer rail network and ght transportation ise the cost to the
nd incorporate ts and toolss on r trucks and their t transportation in
ind effectiveness of port system is a requirement for
developed. The experience of the countries which have achieved rapid development shows that development of freight transport systems is a high priority area in their economic development plans.
oototes
Department of Customs, Department of Census and Statistics and Author's calculation
Annual report, 2010, Central Bank of Sri Lanka
Budget Speech, 2011
Cook Peter, “Supply Chain Study for Sri Lanka”, US-Aid study, September, 2007, Page 21,
Household Income and Expenditure Survey (HIES), 2009/2010, Department of Census and Statistics, Sri Lanka
Current Prices
7 McDonald, Jhon F, d'Ouvill, Edmond, and Liu, Louie Nan"Economic of Urban Highway Congestion Pricing-Kluwer Academic Publishers, Boston/Dordrechet/ London, 1999
Interconnected different node of transportation
The National Policy for Transport Sector - Ministry of Transport - Presented at Parliament on September, 2009
Manifesto, 2010 Presidential Election *MAHINDA CHINTHANA IDIRI DAKMA, January, 2010
27


Page 30
Enhancing the Efficia Railways and its Transportation
Introduction
he national highways network
of Sri Lanka has heavily
congested with increasing both vehicle population and the demand for transport services. Due to the traffic congestion caused by heavy vehicles such as prime movers, large trucks and passenger transport busses, school, office and factory staff transports are also getting delayed resulting in a waste of a huge number of man-hours, daily. But the room for further expansion of highway transport, particularly in the developed and urbanised areas, is limited due to the huge financial and social costs involved with the required acquisition of valuable assets and the compensation payable for them.
In contrast to highways, the use of railways gives huge economical, social and environmental benefits and savings for a country. Globally, next to transport by water, railways is the second least-cost mode of transport of passengers and goods in terms of labour requirement, fuel consumption and other expenses.
Our neighbour, India, can be considered as a country which reaps the maximum benefits of railway transport. But, even in India, the p as se n ger
At the sane time of developed cou process of su transport with ra such efforts positive result competing with en han ce reven measures such speed of land tra km perhour, prov on-board luxur tickets at prices 1 the air tickets distance. Accord such as Japan, France, China a of America have speed (bullet) tra
A power-set with transport 1,800
fuel consumptio1 around 04 litres
consumption ( transport bus w. litres per km. Ac consumes 2OO li 50 km journey, v 10 litres for a sim to transport 1,80 busses (1,800/60 fuel (3010) will
man-power req busses will be 6 the train will be similar in respect
transport sector Table 1 Revenues and ex is operated at levels below the Year Railway Passenger breakeven, but network transport t1 due to the (miles) income (Rs) ဖါးမျိုးဖုံး 1905, 562 6,281,537 sector, the 1920 731 11262,657 overall railway 1930 957 14,919,282 tr a n s p or t 1940 957 10,405,985
1950 896 24,316,310 system 1S
making profits.
Source: Administrative Reports of til
28

mcy of the Sri Lanka Contribution to
, a large number ntries are in the |bstituting air il transport, and are generating ... Railways are air transport to ue by various as exceeding the nsport above 350 riding comparable ies and railway many times below for a similar lingly, countries United Kingdom, nd United States launched highains.
06 wagons can passengers. The n for that will be per km. The fuel of a passenger ill be around O.2 cordingly, a train tres of fuel for a while a bus needs ilar distance. But, 0 passengers, 30 ) and 300 litres of be required. The Luirement for 30 O, while that for )4. The pattern is of administrative
G. W. S. Sisira Kumara
Commercial Superintendent Sri Lanka Railuvays
and technical services too. For additional bus ses, the administrative and technical staff will also have to be increased, but it is not so in respect of trains. Currently, there are about 300 trains in use, and if the capacity of a train is considered as that of 30 busses, current capacity of the railway is an equivalent to 9,000 busses. When the current staff strength of the railways (15,000) is divided by that 9,000, it indicates that the average number of railway staff per unit of passenger bus is even less than 02. But the number of staff per bus is more than 10 in the Sri Lanka Transport Board (SLTB).
The reduction of transport cost could narrow down the existing enormous gap between the farm gate prices of agricultural produce and the retail prices paid by the cor1sunner. When the contribution of the railway to national transport increases, it will lead to reduce the cost of living. Further, environmental benefits such as low carbon emissions can also be obtained.
enditures of the Railways in some initial years
Goods Total Total Profit/ မျိုးဇီး၊ evere expenditure (Loss) (Tons) (Rs) (Rs) (Rs)
580,120 9,690,653 4,766,872 4,923,781 863,120 20,415,816 14,473,439 5,942,377 ,013,893 25,324,379 21,910,247 3,414,132 ,018,030 17,107,451 21,157,355 -4,049,904 280,891 57,650,139 71,272,521 -13,622,382
e Sri Lanka Government.
Economic Review: Aug./Sept. 2011 -


Page 31
In this context, it is important to review the contribution made by the railway in the past, its current status and the targets and potentials for development in the future.
Sri Lanka Railways at the Initial Stages
Sri Lanka Railways (Ceylon Government Railways) WS commenced in 1867, with the objective of transporting coffee and tea from the upcountry to Colombo. Accordingly, for several decades, the main source of revenue for the Railways was transport of goods, but subsequently that position was replaced by the transport of passengers, due to the gradual expansion of the services sector. Table 1 indicates that the Railways earned profits for the government during those initial stages.
At the inception, tea industry contributed to the profitability of railway transport. The outputs of the plantations were transported to Colombo in the downward journey, and machinery, fertiliser, food items and labourers were transported in the upward journey from Colombo. According tO Government's Administrative Reports for the year 1900, Rs. 55.7 min out of the total export revenue of Rs. 90.8 mn was earned through tea exports. The revenue of the Railways too increased correspondingly. In the year 1905, 28% of the total revenue of the government was contributed by the Railways earned mainly from goods transport. In 1905, 25% of the total revenue of the Railways had been contributed by the plantation Se C tOT. According 1ίΟ the administrative reports of the second half of the 19th century, even after setting off of interests on loans obtained to construct the Railways, there had been a surplus of Rs. 2 lakhs.
The Commencement of incurring losses by the Railways
The Railways commenced incurring losses during the period of 1935-1941 (Table 1). The volume of goods
- Economic Review: Aug/Sept. 2011
transported du shows a decline
the commence) lorry services fo passengers and The losses of t
continued to inc
and the same si even today.
government's
reports, by th expenditure C exceeded revenu the year 1968 increased to 5' policy of the go' policy limitation government ir passenger and were factors th
this situation. A
event was t.
limitations in transport in 1 Railways lost
enjoyed on good
The factors tha the decline of by Railways
By the year 196 engines decommissioned became diesel-p the system of c introduced, mir. and facilitating an increased in But the Railway up the next glob trains. This increase t expenditure wl efficiency of th gaining of the welfare concept leaving aside competitivene: became an ins public welfarew funds from the prioritising transport, goo access roads t facilitated good neglected an misappropriatic

ring this period ... The reason was
ment of bus and r the transport of goods respectively. he Railways had rease since 1947, ituation continues According to administrative e year 1950, the of the Railways ue by 10%, but by , the loss had 2.4%. The wages vernment and the is imposed by the the pricing of goods transport at: contributed to
nother significant he removal of iposed on lorry 951. Thus, the the monopoly it ls transport.
at contributed to goods transport
9, all the coal-fired
had been l, and all the fleet powered. In 1959, olour signals was innising the delays the deployment of umber of trains. rs could not catch all trend of electric contributed to
he recurrent hile reducing the e Railways. Since 2 independence, s came to the fore, profitability and ss, the Railways titution providing hile depending on : Treasury. While
on passenger ds sheds, yards, o port, etc. that ls transport were ld allowed for
.
Similarly, the process of privatisation and restructuring of State institutions since the 1980s resulted in the loss of transport contracts that the Railways had with them. Due to the privatisation of activities of the Food Department, Cement Corporation, Fertiliser Corporation, Flour Manufacturing Corporation and Oils and Fats Corporation, the Railways lost the opportunities for transport of their finished goods as well as raw materials. Later, bowser trucks joined the transport of petroleum, thus making the Railways redundant in that sector too. When rail transport is used, goods have to be transported to and from the railway stations using other nodes. Therefore, it is inevitable that the costs associated with loading and unloading would increase. These higher costs also contributed to the gradual diminishing of transport of goods by the Railways. Due to economics of transporting goods from farm or factory straight to market, lorries became the preferred and more established mode of goods transport.
Another factor that contributed to the failure of the Railways as a node of cargo transport is the fact that the institution is still being governed by the rules and regulations of the colonial era. For 145 years, these regulations had been preventing new commercial strategies being adopted. Financial Regulations, Establishments Code and Government Circulars are discouraging responsibilities by the management. The officers are discouraged, and they resent new experiments or changes. Even a small improvement in lengthy processes relating to minute matters are difficult to be implemented. In this context, the only option for the minimisation of losses was to reduce expenditure. Accordingly, lossincurring routes such as Awiss a wella-Opanayake were closed down, and some services and out agencies situated away from the railway lines were
29 -


Page 32
withdrawn. The staff of the Railways comprised of public servants who were governed by the rules and regulations of the government; their skills and 2fficiency were not recognised or encouraged, but job security was ensured even for the most lethargic. As a result, recruitments, particularly for the skilled technical grades, faced various difficulties, a number of vacancies left unfilled and the productivity of the railway staff deteriorated.
Infrastructure facilities of the Railways
The Railways is in possession of adequate infrastructure to provide an islandwide service. Table 2 summarises the existing physical and human resources available with the Sri Lanka Railways.
Reasons for the non-expansion of the Railway Transports
Cargo transport
One of the reasons for non-popularity of the railway transport is the higher prices. At the same time, nonadherence to a specified timetable also contributes to this. The Railways charges a minimum of Rs. 950 (considering only the operational costs) to transport goods for one kilometre. For an example, if one cube of sand is transported from Manampitiya to Colombo, the transport cost charged by the Railways alone exceeds the sale price of one cube of sand in the open market. Accordingly, transporters prefer the least-cost method which is still the road transport. Due to insufficiency of locomotive engines, the cargo transport could not be given priority, and therefore, delays could not be avoided and consequently rail transport was grinding to the lowest level.
Passenger transport
If passenger transport by rail is somewhat popular, it is only in urban areas. Except for long-distance trips and office-time in-bound/out-bound trips, all other trains run with belowcapacity number of passengers.
Development highways ar expressways v the popularity increase in privately-owr particularly thc vehicles such and two wheele propensity of public transpor side-effects of road traffic accidents have the sane time, the country is ir on fossil fuel crucial for the c once again, c nore public tra
Improvement of the Railwa its share of tı
The steps that improve the Railways and transport secto discussed in th
Re-organisat administratio
The continuati
as a governmer longer beneficia economy. De making are in government Centralised makes ari dependent on abilities or dis decisions sh. collectively, a restructuring responsibiliti decentralised. structure wil
Table 2
Type of facil
Locomotive e
Power sets
Railways (km Railway stati
Approved cad
Source: Reco
30

of a network of d opening of rill further reduce of train travel. The the number of ed vehicles, se of low-cost small as three wheelers rs, has reduced the the people to use t. But, as undesired that development, congestions and also increased. At at the macro level, curring a huge cost s. Therefore, it is ountry, if the public om mences u sing Insport.
of the efficiency ys and enhancing ransport
should be taken to efficiency of the its share of the r in the country are his section.
ο η of
on of the Railways ut department is no al for the country's lays in decision evitable under the regulations. decision making institution fully a single person's sabilities. Instead, ould be taken nd target setting, and assigning of es should be An administration nich is free of
un necessary political interferences and devoid of acting and covering appointments should be established.
The administration model of the colonial era has become extinct even in the imperial countries which introduced it. This system of a single head should be done away with and replaced with a main administrative council which should be comprised intellectuals and experts in the relevant fields. In the current scenario, the chief manager is compelled to spend most of his time on matters irrelevant to running of trains and consequently time available for him for railway policy planning has become insufficient. Due to the procedural inflexibilities of the State administrative model, approximately 50% of the approved cadre remains vacant, while a substantial part of the annual allocations of funds remain unutilised.
Efficient : utilisation of the resources of the department
If the assets of the Department of Railways are properly utilised, a substantial annount of income could be earned. Such funds could be utilised to set off some of the operating expenses. Assets with huge values remain underutilised, and due to the State rules and regulations which have to be complied with, no capital infusions could be made to enhance the value of such assets. For an example, under the Lands Ordinance of the Government, the maximum period that the properties of the Railways could be - leased is 05 years and the
Some infrastructure facilities of the Railways
in 20
ity Number Operational Not operational
ngines 138 92 46 69 57 12
) 1,440
OS 363
Γε 17,173
rds of the Department of Railways.
Economic Review: Aug/Sept. 2011 -


Page 33
lessee can use such assets only for short-term purposes such as crop cultivation. As a result of such limitations, valuable investment opportunities are missed and assets remain un used or misused. To develop these assets, a State-owned company (based on the Indian Model) should be established under the Companies Act. Accordingly, catering services, reception halls, parking spaces, and rest rooms of the Railways can be reorganised and can be made profitable.
Minimisation of the underutilisation of railway lines
It has been estimated that the existing railway lines are used only for 25% of the available time. For an example, trains run only for 80-120 minutes per day in the 1.5km section between Kalutara North and Kalutara South. As such, the line is under-utilised for 20 hours per day. This is a substantial issue, and the lines utilisation should be increased at least up to 12 hours a day. Increase of the transport of cargo could be a viable alternative for this purpose.
Short-term concessions from the Σονernment
The main reason for the nonattractiveness of the Railways for cargo transport is the higher cost (per tonne of cargo). Therefore, there is a need to subsidise goods transport charges for a short period. The operational expenses per unit of cargo can be minimised only with the increase of volumes, and subsidies will have to be continued until the demand reaches to that level.
Minimisation of the transport of empty carriages
Minimisation of the transport of empty carriages is also a must. The carriages which transport raw materials should bring in finished goods on the return journey and vice versa. The main (up country) line was profitable at the initial stages due to the minimisation of unit cost achieved through transport of food, machinery, fertiliser and labourers on the upcountry journey and tea on the Colombo-bound journey.
- Economic Review: Aug/Sept. 2011
Use of new tec)
The traditional
positions created stages to suit economic enviror still prevails, an number of servic too. All these con the wage bill of example is colle from railway sta using an iron sa: in use from t minimum u se
technology in the waste of labour. non-mechanica constructions,
security services minimise costs would help ma profitable.
Replacement container-typ improved high
The Indian Rai using carriages of exceeding 100k goods are tran carriages, goods
to give way to the This would help transport by the
Protection of
reSQ CSS
It is essential lands and bu: protected. The Railway lands fo term projects
jeopardise futu activities of the
recommence goc expand passeng essential to p reservations of 1
Construction
lines
In the construct lines, rather t. thinly-populate speculative futu important to giv requirements su between Color connection of Ja Kotte to the railw

λΣαοίοgy
institutions and during the initial the social and ment at that time d there is a large e-providing points tribute to increase the Railways. An :ction of revenue tions is still done fe which has been he 1800s. The of information 2 offices results in Sub contracting of al civil
sanitary and , etc. would help , which in turn ke the Railways
of the existing e wagons with speed wagons
lways is already which are capable tam per hour. When sported in such trains do not have passenger trains. augment the goods
Railways.
f the existing
that the existing ildings are well : release of the r large-scale longnight seriously ure development Department. To ds transport and er transport, it is rotect the land the Railways.
of new railway
ion of new railway han focusing on i areas based on “e projections, it is 2 priority to urgent ch as double lines nbo-Homagana, yawardhanapura — vay network and a
third line up to Moratuwa, etc. Such a policy would also help reduce the road traffic congestion in and around Colombo.
Other strategies
The main reason for the reduction in the number of passengers, particularly during night, is the potential risks of thefts and burglaries. Running few trains during night also contributes to the same problem. For an example, the day's last train on the coastal line is the Aluthgama-bound one at 9.30 p.m. and the next train will be the Kalutara-bound one at 5.30 a.m. in the following morning. Enhanced security in the trains at night and parking facilities for motor vehicles and bicycles of the passengers at the railway station would help attract more passengers. Similarly, deployment of modern carriages with highquality facilities for the office-time trains and other passenger trains and also initiation of an appropriate security mechanism for such facilities may help attract and retain more passengers. Already, two luxury coaches have been deployed in the Inter-City service as a joint venture between the Railways and the private sector. The tickets have been priced at rates six times higher than the normal rates, but the fact that advanced bookings for six months exists for that service reveals that a demand prevails for high-quality services.
Conclusion
The Railway service which spends a huge amount of public funds should face the current challenge of maximising efficiency of utilisation of its resources and management to minimise losses and to reach at least the breakeven point. If the losses are reduced, the prevailing higher prices for goods and passenger transport could be reduced and rationalised. Time should not be lost by the Railways in realising and enhancing its share of national transport by implementing the measures suggested above.
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STUDENTS' PAGE
Economic Developm
Introduction
lthough development has
been a constant concern of
overnment policymakers, economists and other social scientists and has touched the lives of more people than ever before, defining the concept in a precise manner has been a major theoretical and practical challenge. FrOrn this conceptual indeterminacy, competing ideas as to how best to measure and promote development have arisen. Different people may hold different views as to what constitutes development. Some may believe that development means higher incomes. Others might believe that development is a change in the structure of the society or of institutions. Still others might consider development 8. improvement in the health and education outcomes of a given population. Economics tells us that all of the se factors are important in shaping an economy capable of supporting its population. Thus, the main objective of this article is to explain how the meaning of development evolved over the years from a growth-based' narrow concept to a multidimensional human development concept.
Growth and Development
The term 'development has traditionally meant the capacity of a national economy to generate and sustain an annual increase in its Gross National Product (GNP). A common alternative economic index of development has been the use of rate of growth of per capita GNP to take into account the ability of a nation to expand its output at a rate faster than the growth rate of its population. Thus the traditional approach to 'development' has been to see economic growth as a proxy for development; policies that led to growth were necessarily, seen as pro-development and inherently
32
good; policies negligible or ne growth were see improper.
Implicit in almos term 'developme that some count the world are
whereas other CC small fraction population, are
The discussion ( always tied up wi like, why are po and rich countries countries lag beh in the develo standards of livir poor countries prosperous? In important dimen of 'development 1 growth or more p national income
Development c economic growth concept and basi of the same.
development in 1 been typically se planned alteratio of production a generally referre change. Wher economics first a cademic disci Second World operated in a m intellectual env believed that de effectively replic of the countries v industrialised
nineteenth cent that developmen experience of Germany, the U Japan. The probl was conceived as backward traditio modern economic economic growt industrialisatic importance of inc capital accumula in the economic

„ent
that had little, gative impact on in as necessarily
t every use of the nt' is the notion ies and regions of extremely poor, untries, relatively of the world
very prosperous. f development is th basic questions or countries poor rich? why do poor ind rich countries pment of their ng? and how can become more this sense, an sion of the concept refers to economic recisely growth of per capita.
:onceived of as is a quantitative cally means more Yet, economic che past has also en in terms of the n of the structure nd employment, d to as structural development emerged as an pline after the War, economists uch more certain vironment. They velopment would ate the experience which had already during the ry, in particular, t would follow the 3ritain, France, nited States and en of development transforming the nal economies into es by accelerating h through rapid in. Further, the ceased savings and tion was stressed growth process.
Prof. Danny Atapattu
Senior Professor of Economics University of Ruhuna
Thus, in the process of economic development, it was expected to increase the share of the dynamic industrial sector in national output and employment and decrease of the share of agriculture. Another important qualitative change that is expected to be associated with economic development is technological change; the on-going process of change in process and product technologies, resulting in radically new modes of production and new product ranges. It is possible to have growth without any economic development - a skewed growth where the gains in income are highly concentrated and economic mobility is very limited. An example is provided by some of those oil-exporting countries, which experienced sharp increases in national income but showed hardly any changes in their economic structure. It is unlikely, however, that significant economic development will occur without, at least, moderate economic growth. In other words, economic growth may be necessary, but not a sufficient condition for economic development.
On the whole, prior to the 1970s, development was nearly always seen as an economic phenomenon in which rapid gains in overall and pęr capita GNP growth would either "trickle down to the masses in the form of jobs and other economic opportunities or create the necessary conditions for the wider distribution of the economic and social benefits of growth.
Development &器 3. Multidimensional Process
In the 1970s, the identification of development with economic growth came under increasing criticism. The experience of the 1950s and
Economic Review: Aug/Sept. 2011 -


Page 35
the 1960s, when many developing nations did realised their economic growth targets, but the levels of living of the nasses of people remained for the most part unchanged, signalled that something was very wrong with this narrow definition of development. Authors such as Dudley Seers, Gunnar Myrdal, Paul Streeten, Hollis Chenery, Mahbub ul Haq and institutions like the International Labour Organisation (ILO) pointed out that developing countries did not experience much change in the living conditions of the masses of the poor in spite of the impressive growth figures in the post-World War II period. They came to the conclusion that development involves more than economic growth and changes in economic structures. Seers formulated three additional requirements for the use of the term development, namely, there should be a decrease in poverty and malnutrition, income inequality should decline, and the employment situation should improve. According to Seers, the purpose of development is to reduce poverty, inequality, and unemployment. "Redistribution with growth' became a common slogan in the discussions of development policies in the midseventies.
Other critics went even further and challenged the too narrow focus on the economic dimensions of development alone. A country can grow rapidly, but still do badly in terms of literacy, health, life expectancy and nutrition. Economic growth does not necessarily make people more happy or satisfied. In the mid-1970s, the International Labour Organisation proposed "basic needs' approach to development, which focused on a bundle of essential services and goods required for attaining a minimum standard of living, and tried to measure access to this bundle in different countries. According to this approach if people are in a position to avail more amount of food, have better access to educational facilities, and have greater command over the civic amenities like water supply, water sewerage, healthcare, shelter, etc., all such would represent economic development. Therefore, according
- Economic Review: Aug/Sept. 2011
to this approach v per capita GNP
whether a fairer income is made
matter lies with t basic needs or people”. The bas depends on cult Basic needs cha levels rise and : more complex. concluded that “th needs is a coun dynamic concept,
Criticism of growt the emergence of indicators', lif literacy, levels of mortality, availabi hospital beds, li availability of calo To measure econc with this approa launched by the Research Insti Development (UI This study was co selection of the 1 indicators of dev analysis of th between these different levels. Accordingly, a CC
Development
constructed. indicators we However, only 16 social and 7 selected. They expectancy, (ii) pc localities of 20,0( percentage of t (urbanisation), (ii of animal prote combined enrolme secondary leve. vocational enro average number room, (vii) news per 1,000 pc percentage of ec population with water, etc., ( production per 1 worker, (x) percen labour in agricult consumption, KV steel consumptio (xiii) energy consu equivalent pe) percentage of GD product) d manufacturing,

whether GNP and increase or not, distribution of or not, the real he provision of facilities to the ic needs concept ure and values. ange as income society becomes The ILO has e concept of basic try-specific and
h fetishism led to so-called 'social e expectancy, education, infant lity of telephones, censed doctors, ries, and so forth. nic development ch, a study was United Nations tute on Social NRISD) in 1970. incerned with the most appropriate elopment and an e relationship indicators at of development. mposite “social Index was Originally, 73 re examined. core indicators (9 !conomic) were are: (i) life pulation living in )0 and over as a otal population ii) per capita use in per day, (iv) ent at primary and education, (v) lment ratio, (vi) ' of persons per paper circulation pulation (viii) onomically active electricity, gas, ix) agriculture nale agricultural tage of adult male ure (xi) electricity V per capita, (xii) n, kg per capita, inption, kg of coal capita, (xiv) P (gross domestic erived from (xv) foreign trade
per capita, and (xvi) percentage of wage earners to total economically active population. The constructed development index was considered to be more suitable than per capita income approach to measure economic development. On the basis of such “Development Index”, the ranking of certain countries differed from the ranking made on the basis of GNP per capita.
In an effort to provide an alternative measure to GNP per capita as an indicator of development, Morris David Morris created the Physical Quality of Life Index (PQLI) in the mid-1970s for the Overseas Development Council in the United States to measure the quality of life or wellbeing of a country. He included three indicators, namely, life expectancy, infant mortality rate and literacy rate. For each indicator, he devised a scale which included the numbers ranging from 1 to 100 where 1 represents the worst performance by any country while 100 for the best performance. For life expectancy, the upper limit of 100 was assigned to 77 years which was achieved, by Sweden in 1973, and the lower limit of 1 was assigned to 28 years which was the life expectancy of Guinea-Bissau in 1960.
Sen's Economic Goals
Amartya Sen, the 1998 Nobel laureate in economics, has argued for an even broader concept of development focusing on the concept of freedom. He sees development as an integrated process of expansion of substantive freedoms. According to Sen, economic growth cannot be sensibly treated as an end in itself. Development has to be more concerned with enhancing the lives people lead and the freedoms that they enjoy. Sen understands human well-being aS al multidimensional phenone non that cannot be captured by a single indicator such as income. Hence, he proposes enlarging the informational space in assessments of well-being achievements with emphasis on two concepts: functionings and
33


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capabilities. The functionings are the valuable activities and states that make up of people's well-being. Functionings are related to goods and income but they describe what a person is able to do or be as a result. Examples of functionings include both basic and complex achievements such as living long, being adequately nourished, enjoying good health, being happy, having self-respect and participating in social and political activities in the community. The notion of capability is essentially one of freedom - the range of options a person has in deciding what kind of a life to lead. In other words, capabilities refer to genuine freedoms a person enjoys to lead the kind of life he or she has reason to value. An obvious example of capability deprivation is starvation, assuming a person considers getting enough food and nutrition to be a valuable state.
For Sen, freedom (not development) is the ultimate goal of economic life as well as the most efficient means of realising general welfare. Overcoming deprivation is central to development. Economic growth, technological advance and political change are all to be judged in the light of their contributions to the expansion of human freedoms. Among the most important of these freedons are freedom from famine and malnutrition, freedom from poverty, access to healthcare and freedom from premature mortality. Unfreedons include hunger, famine, ignorance, unsustainable economic life, unemployment, barriers to economic fulfilment by women or minority communities, premature death, violation of political freedom and basic liberty, threats to the environment, and
little access to health, sanitation,
or clean water. Sen argues that the "capability to function' is what really matters for status as a poor or non- person.
The use of the concept of freedom as a normative yardstick for development is insightful. Development can be seen as a process of expanding the real freedoms that people enjoy. The goal of development is the promotion and expansion of valuable capabilities. In this perspective, economic growth remains important, but not as a
goal in itself. It i potential contril range of freedo changes in other education and h least as importan of freedons. Ov de cades, Sen approach has b popular amon economists anc methodologists cannot focus onl we also need t factors impactin capability to analysis is part ( the United N: Development
accounts for heal as well as incon
The World Bank, 1980s, champi growth as the go; changed its stand World Develo asserted that th development is quality of life'. The of life involves better education, of health and 1 opportunities, g. freedom and a ri From the aboved conclude that de purely an econo but rather a n process involving social structures, and national inst the acceleratic growth, reduction the eradicatio Development is reality and a state society has, combinations of and institutio
secured the mea
better life. Wha components of development in reflect three bas core values. They
i. Sustenance: All basic needs witho be impossible. Th basic human ne shelter, health an
ii. Self-Esteem: C conducive to the self-esteem throug of social, politic systems and in promote human c
34

important in its ution to a wide ns. Sometines spheres such as ealth can be at in the expansion er the past two s capabilities come extremely g development social science
Development on incone, but o look at other g on a person's unction. Sen's f what has given ations' Human Index, which th and education
مح۔
which during the oned economic all of development , and in its 1991 pment Report, Le "challenge of
to improve the improved quality higher incornes, higher standards nutrition, equal reater individual cher cultural life. iscussion, we can velopment is not mic phenomenon ultidimensional major changes in popular attitudes itutions as well as in of economic of inequality and n of poverty. both a physical of mind in which through some social, economic nal processes, ns for attaining a tever the specific this better life, all societies must ic components or
r ere:
people have certain ut which life would ese life-sustaining eds include food, d protection.
reating conditions growth of people's in the establishment all and economic stitutioris which ignity and respect.
Economic Review: Aug./Sept. 2011
In addition to higher incomes, the provision of more jobs, better education, and greater attention to cultural and human values will serve not only to enhance material wellbeing but also to generate greater individual and national self-esteem.
iii. Freedom from servitude: Increasing people's freedom to choose by enlarging the range of their choice variables. Freedom here is to be understood in the sense of emancipation from alienating material conditions of life and from social servitude to nature, ignorance, other people and dogmatic beliefs. The concept of human freedom should also encompass various components of political freedom, personal security, rule of law, freedom of expression, political participation, and equality of opportunity.
Human Development Index
The broadening the definition of development in this manner entailed challenges related to the measurement and operationalisation of the concept. A broader concept of development should require a broader set of measurement instruments. Human development has many facets; so any index of human progress should incorporate a range of indicators to capture this complexity. But having too many indicators in the index would blur its focus and make it difficult to interpret and use. Use of a small set of indicators would therefore be desirable to allow cross-country comparisons, and to keep policy makers focused on the overal trend of development progress. Based on this choice, the United Nations Development Programme (UNDP) developed its main progress assessment tool, the Human Deyelopment Index (HDI) in 1990 shifting the focus of development edonomics from national income accounting to people-centered policies. The broadening of the notion of development allowed overcoming some of the limitations of the previous, 'economic growthbased concept' of development. It treated income as a means and not as an end; it challenged the erroneous assumption that there was an automatic link between growth and progress in human development; it overcame the notion that people are simply means


Page 37
of production, and focused on individuals as ends of the productive process. This index is calculated every year and published in the UNDP Human Development Report. The HDI has had a significant impact on drawing the attention of governments, corporations and international organisations to a spects of development that focus on the expansion of choices and freedoms, not just income.
The HDI is a composite index which eaSleS the average achievements in a country in three basic dimensions of human development: a long and healthy life, access to knowledge and a decent standard of living. A long and healthy life is measured by life expectancy at birth. Knowledge is measured by mean years of schooling and expected years of schooling. A decent standard of living is measured by GDP per capita in Purchasing Power Parity (PPP) terms in US dollars.
Although highly desirable, these goals have not yet been fully attained by any country; so the actual indicators are expressed as decimal shares of the ideal. Accordingly, the HDI value varies between 0 and 1. One of the main adavantages of the HDI is that it allows countries to be ranked in the order of their achievements in human development. On the basis of the achievement of human development, countries are classified into four; very high, high, medium and low human development. HDI classifications are relative - based on quartiles of HDI distribution across countries. In the recent ranking based on the 1911 Human Development Report, the top five countries were Norway, Australia, Netherlands, United States and New Zealand. The bottom five countries were Chad, Mozambique, Burundi, Niger and Congo. The top five developing economies were Singapore, United Arab Emirates, Cyprus and Brunei. The Human Development Index for selected countries for the year 2011 is given in Table l.
The disadvantage of the Human Development Index is that it does not allow us to judge the relative importance of its different
- Economic Review: Aug/Sept. 2011
uário
Table
Country
Norway Australia Netherlands United States New Zealand Canada Ireland Liechtenstein Germany Sweden
Source: UNDP, F
components or tc a country's index - whether, for ex because of a ch capita or becaus education or he development inde countries differs
their ranking b capita. The diffe country's huna ranking and pe ranking shows ho compared with o translating th economic growth
for its population
Sustainable De
Sustainable deve defined in many v frequently quoted the Brundt “Sustainable development that of the pre compromising th generations to needs.” Enviror used the term S. attempt to cla: balance between on the one hand a preservation or economists, a de sustainable if an of overall capita constant or rises in these statene) future growth an life are critically quality of environ resource base of quality of its ail present a comm generations. Th sustainable dev the integration environmental

2. Development Index for selected countries, 2011
Ranking | HDI Country Ranking HDi
1. 0.943 Singapore 26 0.866 2 O.929 Malaysia 6. O.761 3 0.910 || Sri Lanka 97 0.691 4. O.91O China 1 O1 O.687 5 O.908 Thailand 103 O.682 6 O.908 Maldives 09 0.661 7 O.908 India 134 O.547 8 O.905 Pakistan 145 O.504 9 O.905 Bangladesh 146 0.500 10 0.904 Nepal 157 0.458
(uman Development Report 2011.
understand why components at all levels. Only
changes over time ample, it happens ange in GNP per e of a change in alth. The human x ranking of some significantly from y real GNP per rence between a an development r capita income Iw successful it is, ther countries, in e - benefits of into quality of life
l.
velopment
lopment has been ways, but the most definition is from and Report: levelopment is meets the needs Sent without e ability of future neet their own linentalists have ustainability in an rify the desired economic growth und environmental the other. For velopment path is d only if the stock l assets remains over time. Implicit nts is the fact that d overall quality of dependent on the ment. The natural a country and the , water and land on heritage for all le achievement of :lopment requires of its economic,
and social
social,
development that manages to balance these three components can be su stained for long. Conversely, ignoring one of the aspects can threaten economic growth as well as the entire development process. For example, industrial growth might conflict with preserving natural resources. Yet, in the long term, responsible use of natural resources now will help ensure that there are resources available for sustained industrial growth far into the future. If we do not balance our economic and environmental objectives in the
short term, it would not be possible to sustain our development in the
long term.
A better understanding of the need for sustainable development first
led to attempts to 'green national accounts - that is, to account for changes in natural capital in calculations of gross domestic product and then to the development of statistical methods to account for changes in a country's human capital. Over the past two decades, the concept of sustainable development has become more comprehensive and measurable. A recent World Bank study defined sustainable development as "a process of managing a portfolio of assets to
preserve and nhance the opportunities people face'. The
assets that this definition refers to include not just traditionally accounted physical capital, but also natural and human capital. To be sustainable, development must provide for all these assets to grow over time - or at least not to decrease.
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A Critical Appraisal
Income Tax
Authored by Cecil Aluthwela, published Stamford Lake (Pvt) Ltd., 2011
economic development when
the country is undergoing rehabilitation after a three-decadelong conflict and poised for an economic take-off, the issues of taxation and fiscal policy take on added importance. Taxes in Sri Lanka finance 65 per cent of the government's expenditure and lending, and in the context of a declining tax ratio to GDP (Gross Domestic Product) in recent years, the issues involving current taxation, particularly in income tax which brings in about 20 per cent of tax revenue or around 3 per cent of GDP, aSSle crucial significance.
I the current context of
This book, written by a former Deputy Commissioner of the Inland Revenue Department, therefore, is timely and consists of a collection of essays dealing with both tax policy issues and tax administration using his wide knowledge of the subject and experience in administering income tax in the Department.
Commencing with a description of the historical background of taxation, the author goes on to discuss issues such as tax avoidance and evasion, tax amnesties, some issues argued in several tax cases in Courts, a critical analysis of various administrative aspects of taxation including raids and penalties, relations between the tax authorities and the taxpayers and includes a historical perspective of tax administration in Sri Lanka from 1932 to 2007.
These issues discussed, both policy and administrative, assume importance as they figure in the current attempts at reforming the taxation system by the Presidential Taxation Commission of 2009. This
point has been e Foreword in the member of the Saman Kelegama
In all these 1 discussed in the
has been forth. express his own
as the title of th it is critical appra discussed. As the “the author has ni extremely critical and has spar department, coll tax lawyers and
even some jud Appeal Court and
The book comme introduction to taxation givin background as v principles that structure where relevant principle Adam Smith in Nations”. This ir classification of and indirect
fundamental pri and progres characterise a pro
This is followed b tax anne Sties successive gove Lanka with mono Here, the author a prominent Chau and tax consulta reasons attribut of tax amnesties Accountant took amnesties failed
(i) that in the year taxes were not business, property
(ii) that people did confidence in the
36

of some Aspects of
by
mphasised in the pook written by a commission, Dr.
'elevant issues book, the author right enough to views boldly, and e book indicates, lisal of the issues : Foreword states, othesitated to be where necessary, ed neither his eagues, eminent practitioners nor gements of the | Supreme Court.
nces with a brief the subject of g a historical vell as the basic
govern a tax he discusses the es enunciated by his "Wealth of cludes the broad taxes into direct taxes and the nciples of equity sivity which per tax structure.
y a discussion of granted by :rnments in Sri tonous regularity. takes issue with tered Accountant Lnt regarding the 2d for the failure The Chartered the view that the for two reasons:
of amnesty, evaded
in cash but in and assets,
not have trust and ax administration.
Reviewed by D.D.M. Waidyasekera
President, Institute of Tavcation of Sri Lankca
The author disagrees and takes the opposite view. On the first, he points out that a significant percentage of declarations was in fact in cash, and on the second, he states that it was precisely because tax evaders had nothing to fear in declaring that they took advantage of the amnesties in 1989 and the 1990s.
The discussion on tax amnesties is connected with two other relevant issues, tax avoidance and tax evasion, in Chapters IV and VIII of the book. Tax avoidance and evasion, though interconnected, are two different things legally. Tax avoidance takes place within the legislative framework where a taxpayer takes advantage of the loopholes in the law and the maximum advantage of the legislative provisions to minimise his tax liability. Tax evasion, on the other hand, is the total avoidance of tax liability by not adhering to the legal provisions of the tax laws. The author points out that, today, the drafting of tax avoidance schenes has become a big industry, and thus, a big problem to Inland Revenue authorities the world over. The Courts which were initially responsible for this, have now come out strongly against such schemes. In this respect, the author discusses the significance of the United Kingdom tax cases,
Duke of Westminster vs Commissioner of Inland Revenue (CIR) which endorsed the
taxpayer's entitlement to the letter of the law, and the subsequent cases of Ramsay vs CIR, CIR vs Burmah Oil Co. and Furniss vs Dawson, came out strongly against tax avoidance schemes.
Economic Review: Aug/Sept. 2011


Page 39
In respect of tax evasion, the author in Chapter VIII reviews a Sri Lanka tax case of Merril J. Fernando & Co. vs H.B. Gunadasa and others, where he respectfully disagrees with the judgements given by the Court of Appeal and the Supreme Court when they held that the taxpayer was guilty of tax evasion. The author is of the contrary view that where the taxpayer had not concealed the primary facts, he cannot be accused of tax evasion.
The author's trait of having confidence in his own judgement and disagreeing with those of others is again manifested in Chapter V where he reviews an article by a leading attorney-at-law and tax consultant on the legal issues in tax investigations. The author disagrees with the tax lawyer on a number of matters. These include such issues as (i) the nature of tax investigation (ii) more appropriateness of judicial review than case-stated procedure (iii) the circumstances in which a taxpayer should move for a Writ of Certiorari (iv) the legality of seizing documents in the course of a Revenue Raid, etc.
The issue of Revenue Raids itself is specially gone into Chapter VI which discusses the powers of the Inland Revenue authorities in respect of entry, search and seizure. It deals with such issues as the effect a raid has on the party searched, the concept of Public Interest, the seizure of documents and other evidence, the effect on third parties, the evidence obtained on the basis of illegal search and the concept of Legal Professional Privilege.
On tax administration, the book Covers many areas such as the penalties for incorrect tax returns, the relations between the Tax Department and the tax-paying public, the issue of establishing a Revenue Authority and a historical review of the Department in its 75 years of existence from 1932 to 2007.
Chapter VII which de als with penalties for incorrect returns
Economic Review: Aug/Sept. 2011
discusses a numb as on whom is t. the standard of p of fraud and wilfl mitigation, appea and whether pe have attained th
In respect of rela authorities and 1 which is crucial f compliance ra maintains that e early stage, the the two have n Initially, this was of the tax-pay eventually to t conduct on th department. Ove the author, the accept a greater the breach of good the department a public. Perhaps the departmen dispute this view
Many attempts h minimise the
administration
efficiency of the
branches of the II measures incl improvements,
training, perforn establishment of etc. In this cont the establishme Authority. The
disagrees with t for the proble departments, an the problems w addressed and re imposing a supe revenue departn
Finally, the au performance of th during its sev from 1932 to 200 Foreword to the has followed Dr advice to follo history of the L 1957 by recordin present day. He the present vol lesser detail. Thi a whole lot of s assessments,
arrears, taxes i well as detail:

er of issues such ne onus of proof, oof, the concepts l neglect, penalty s against penalty nalty provisions :ir objective.
tion between tax ax-paying public
ir securing a good ce, the author xcept at the very elations between
ot been cordial.
due to the lapses ing public and he attitude and le part of the rall, according to department must
responsibility for relations between nd the tax-paying the tax officers of t will probably
7.
ave been made to defects in tax and improve the various units and Department. Such ude procedural computerisation, nance incentives, a closed service, ext, one view was :nt of a Revenue author, however, his as a panacea ems within the ud maintains that within should be :ctified rather than }rstructure on the
hc1ntS.
thor traces the he Tax Department enty five years 7. As stated in the
book, the author . Gamani Corea’s w up his earlier Department up to g the events to the has done this in ume although in s chapter contains tatistics regarding collection data, n default, etc. as s of the human
resources and staff in the Inland Revenue Department and includes an Organisation Chart as at 31.12.2006 as well. However, his judgement is that overall (except for the period 1963-1977), the department has failed to achieve its primary functions of tax collection and combating tax evasion.
There are however some points an earnest reader may ponder on. One is that the issues discussed in various chapters may sound too technical and legal to the general reader interested in taxation, and particularly to the tax-paying public. Some issues may also appear to be outdated and irrelevant in the current context. However, such technicalities cannot be avoided in discussing a subject as taxation due to its very nature. Another point is that some may disagree with the author's viewpoints and contentions on a number of controversial issues and tend to agree with his adversaries. Finally, some may view the vehemence with which the author has expressed his disagreements on various issues with reputed Chartered Accountants, tax lawyers and tax practitioners and even with respected judges of the Appeal Court and Supreme Court, as too harsh and even incorrect. The reviewer, being a fellow student of the author in the Peradeniya Campus in its halcyon days and also a colleague in the Inland Revenue Department is familiar with the author's thinking on these various issues, and hence, is not surprised on the controversial nature of the views expressed in the book.
Nevertheless, overall, the book is an extremely useful source of information with thought-provoking discussions on a number of issues written in a lucid and readable style resulting from the author's long experience in tax administration. It would be an interesting and useful reference material for scholars, administrators, policymakers, tax administrators and the tax-paying public alike.
A Stamford Lake publication, the book is available for sale at the Lake House Bookshop and other leading booksellers.
37 -


Page 40
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