Railway says even 100% fare hike not enough
Even if the proposed 100% railway fare hike comes into effect it will still not make the Sri Lanka Railway profitable as the department currently runs at a loss of 300% as per revenue, states the Sri Lanka Railway Department.
General Manager, Railways Department, L. Gunaruwan told The Morning Leader that the department made Rs. 2,500 million as income last year but incurred an expenditure four times that, of Rs. 10,000 million despite cost cutting initiatives undertaken by the management.
He said, “A price hike of 100% will have a marginal impact on the losses we are incurring but we still welcome it; if this will actually happen, I don’t know.”
According to Gunaruwan a price hike has been under discussion for years but the department had not been officially told by the government if approval has been granted, and that though news of a fare revision had emerged before there was no progress thereafter.
He explained that the Railway Department is totally government controlled and unlike the CEB and the CTB, the department has no control over price revisions.
Gunaruwan said, “The income the railway makes is put back into maintaining the rolling stock and it’s never enough.”
He added that increased expenditure by the government on ‘other factors’ has also contributed to the railway running at a loss.
Gunaruwan said, “In the end it’s up to the government to decide if they want the railway to continue to run at a loss or not.
By Kshanika Argent
Source: The Morning Leader
Tags: fare hike, initiatives, losses, marginal impact, price hike, railway department, revisions, rolling stock
