In 2017, for this blog I interviewed Dr. Dimantha De Silva about the Colombo Transport Plan of the Megapolis Project. He was Consultant/Team Leader of the Colombo Transport Plan. The Megapolis and its Colombo Transport Plan was an initiative of the then Sri Lankan government. This plan included a Light Rail Transit (LRT) system which is a form of rail transit for Sri Lanka’s most populous city Colombo. In March 2019, the Daily News reported that a loan was signed between the Sri Lankan government and the Japan International Cooperation Agency (JICA) to construct an LRT Line from Malabe to Colombo Fort.
When I was interviewing Dimantha in May 2017, I was concerned that Gotabaya Rajapaksa would become Sri Lanka’s next President and cancel this project. Unfortunately, he was elected President in November 2019. Gotabaya Rajapaksa governed disastrously which culminated in Sri Lanka’s economic collapse in 2022 alongside protests which successfully resulted in his resignation. In September 2020, Gotabaya Rajapaksa terminated the LRT project. It was so tragic to see a positive transportation project get cancelled due to Sri Lanka’s broken political system. It had a very beneficial loan condition for Sri Lanka and the agreement had already been signed with JICA.
On the 23rd of July, the Daily News reported that Minister of Transport, Highways and Urban Development Bimal Rathnayake said in Parliament that a final decision has not currently been made on whether to resume the LRT project. Minister Ratnayake mentioned that compensation has been paid to two companies with one of the Japanese companies requesting additional interest payment for the delay. He also said a special committee has been formed to investigate this issue.
I am of the view that the National People’s Power (NPP) government should revive the LRT project. They are involved in positive transport projects right now. This year, the Metro Bus service was launched which continues to expand. These are modern Foton buses with the service run by the Lanka Metro Transit company. Minister Rathnayake stated in July that Sri Lanka will take steps to introduce an electric railway service in 2027. Its first phase will consist of three routes. He gave an update this month that construction is expected to begin in May or June next year.
In July, the Cabinet of Ministers approved a purchase of 600 new deluxe buses with air-conditioning. These buses are for the Sri Lanka Transport Board (SLTB). Minister Rathnayake mentioned in Parliament earlier this month that many new expressways will start construction before the end of 2026. The government just launched a national program to make dangerous and unsafe parts of roads outside of highways safe. On the 18th of this month, the government signed Memorandums of Understanding for this program with local government bodies. Prasanna Gunasena, Deputy Minister of Transport and Highways revealed on the 20th that the construction of Kandy’s Mahaiyawa’s underpass is about 80% done with it aiming to be finished by December. The purpose of the underpass is to improve commuter access to Kandy and to help reduce Kandy’s traffic congestion.
Japan is involved with the Sri Lankan government’s current transport initiatives. Around the beginning of this month, the Japanese government donated seven low-floor buses to Sri Lanka in order to enhance the Sri Lankan public transport system. These bus donations are by both the Japanese government and residents of Yokohama, Japan. This is part of the Metro Bus service as the donated buses were handed over to Lanka Metro Transit, the company responsible for the Metro Buses.
The Japanese government’s development agency JICA who were set to give the LRT loan is currently involved in Sri Lankan development projects. JICA is involved in setting up a Doppler Weather Radar Network in Puttalam. It is being constructed right now and expected to be completed next year. This is funded by Japan’s Grant Aid and will help Sri Lanka prepare for disasters. JICA provided loans for two cardiac treatment complexes in Trincomalee and Anuradhapura which just began construction. In July, Sri Lanka’s second largest water supply project was launched. JICA funded this Anuradhapura North Water Supply Project - Phase II. This month, it was reported that the Kalu Ganga Water project is about to begin. It’s a JICA loan servicing drinking water needs of families in the Colombo and Kalutara districts.
Colombo having an LRT system would greatly assist with travel as the city has too many vehicles on the roads. An LRT would enable people to travel to destinations on the list at a faster speed. It is elevated keeping it separate from regular traffic on its route enabling those vehicles to go faster due to the LRT usage. Colombo’s LRT has great potential to improve Sri Lanka’s economy. Dimantha told me how his mentors and professors in Calgary, Canada (where he lived prior to my interview and lives presently) talked about how Calgary grew and its economic levels increased when Calgary’s LRT system was introduced. He also said that it enabled investors to come in for other projects. This provides potential benefits such a system would have in Sri Lanka.
As Dimantha stated to me, Sri Lanka won’t be eligible for the LRT loan once we elevate to an upper middle income country. This loan has a 0.1% interest rate for a 40 year period and has a 10 year grace period. Sri Lanka was not an upper middle income country when the interview was conducted. We reached this classification by the World Bank in July 2019, only to lose it one year later. The World Bank improved Sri Lanka’s classification this July, returning it to an upper middle income country.
Sri Lanka’s status as an upper middle income country poses challenges to a loan for a revived LRT project as we are no longer eligible for it. If we were to negotiate with JICA on reviving the LRT, we could request it to consist of the original loan conditions when it was signed. If that is not possible, there are other options to look at which could include getting other countries or organisations also involved to ease the cost. It’s important to try to have an agreement on reviving the project including compensation payments reimbursed or at least have the interest compensation requirement cancelled.
Sri Lanka collaborating with JICA on the current development projects can help us in negotiating for a revival of Colombo’s LRT. In January 2025, Minister Rathnayake took a train ride as a regular passenger. Passengers approached him about issues the train service faces. This is a positive action by the Minister in reaching out to the people and their issues. He could use his experiences of travelling on a train and learning of the passengers’ issues as a reason to see the value of a LRT system operating in Sri Lanka, both due the common value of the train & LRT and how an improved system could address passengers’ issues. The LRT can be integrated into the government’s transport initiatives. LRT would complement the current transport projects well. Metro Buses can go to LRT locations linking the two systems to benefit each other.
In light of the government’s positive transport initiatives and work with JICA, I see the LRT as a Sri Lankan project which should be revived. The fact that Japan also donated buses to Sri Lanka this year is a case of them collaborating with the current government on transport which could help with an LRT revival. An LRT system would revolutionise Colombo’s transport sector and bring tangible benefits to Sri Lanka enabling the country to develop further.
