Railway Department to be made a corporation: Minister

18 April 2023 11:46 pm - 6 - {{hitsCtrl.values.hits}}

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

A public corporation or a statutory corporation is operated on a commercial basis and governed by a chairman and director board. A department does not possess commercial qualities as such and is directly controlled by the government. Reforming the SOEs has been prescribed by the International Monetary Fund (IMF) to qualify for financial assistance to tide over the current economic crisis.

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

“In 2021, the Department generated revenue of Rs.2.6 billion. However, Rs.2.3 billion had been spent for the payment of overtime work by the employees, and Rs. 2.7 billion for salaries,” the Minister said.

The Minister said he held talks with the rail trade unions representing engine drivers, station masters and guards, and got their positive responses to the proposed restructuring plan.

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

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

Comments - 6

Tissa Fernando Wednesday, 19 April 2023 04:15 AM

Overtime is more than the salaries which mean that they are working 24 plus hours a day. Still no trains .

Vernon Fernando Wednesday, 19 April 2023 07:50 AM

This will make the things worse. See the status of other government corporations. Fully politicize with Minister's catchers becoming chairman and board of directors. Still there will be labour unions controlling the management. Efficiency canot be increased with out making as a private company.

Sumal Wednesday, 19 April 2023 07:32 AM

It will be the same wine. Privatise or sell to a foreign company if you really want to make profit and eliminate inefficiency.

Jude Wednesday, 19 April 2023 09:22 AM

Public transportation services like buses and train service will never gone make a profit in any part of the world!! What government should ensure is efficient public transportation system!!

Quolp Wednesday, 19 April 2023 02:12 PM

Anyway, do not bring Indian made RAILS that are condemned and considered SUBSTANDARD, try from China which will last longer than Indian Rubbish.

DW Wednesday, 19 April 2023 02:28 PM

The biggest drawback to making Sri Lankan railway profitable or increase revenue is that it is run by engineers. If you analyse large multi-billion dollar companies in the world such as Boeing, Airbus and BMW, you would see that the brains behind their products are engineers however, companies are actually run by those who are specialising in Economics and Marketing. There are other instances where engineers do further studies and learn those fields. In general, engineers are obsessed with doing engineering tasks and are not business-minded. I have known senior engineers who had no idea about cost and benefit analysis. I hope Minister Bandula Gunawardane genuinely wants to make SL railway commercially viable and will seek good advice and the right approach.

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Railway Department to be made a corporation: Minister

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