The Hon. Chathuranga Abeysinghe - Deputy Minister of Industry and Entrepreneurship Development

¶ 01 Hon. Presiding Member, during this debate on the Expenditure Heads of the Ministry of Transport, Highways, Ports and Civil Aviation, it became clear that the Opposition keeps repeating what they could not do, asking us to do it now for the country. Transport is the backbone of a nation’s economy. As populations spread and production increases, mobility develops the economy. In logistics, value is added through freight and passenger transport. From production to the consumer and to services, transport underpins everything. Affordability, lower costs, efficiency, and safety determine economic strength and growth.

¶ 02 The allocation of Rs. 483 billion is a key step to transform the economy and lay the foundation. When we take air, sea, highways, and rail as a system, previous rulers failed to provide an economic framework. Although this sector contributes about 2.5 percent to GDP, its cost can be about 10 percent in some industries.

¶ 03 Those who brought the so‑called liberal economy never viewed transport as an economic strategy but as a cost to be cut or a profit centre. Maximizing profit in transport reduces our global competitiveness—something these “economic experts” took time to grasp.

¶ 04 Under the National People’s Power Government, transport is a service to the economy: reducing production costs for enterprises and commuting costs for workers; reducing travel time increases productivity; reducing fatigue increases productivity; and improving cargo safety increases productivity. Delays at Sri Lanka Customs and in factory clearances have reduced productivity; transport is a strategy to improve this.

¶ 05 We clearly propose leveraging both public and private sectors to realize this transformation. Under the Ministry’s Advisory Council, a team is designing new business models for the transport sector. We are exploring how to monetize available space in public transport, how to treat passengers as consumers, and generate new revenue opportunities from them.

¶ 06 We are proposing to: - Optimize use of existing buses, trains, rail lines, highways, and waterways. - Use rail for freight. - Integrate parking with rail to earn additional income for Sri Lanka Railways. - Use trains for delivery/courier operations. - Expand advertising and marketing to generate revenue. - Provide value‑added services to customers. - Convert lands and buildings into economic production assets, colocating spare parts and repair businesses.

¶ 07 Thus, we can reduce the burden on the Treasury, lower public transport costs, and operate sustainably.

¶ 08 For SLTB, we lack sufficient buses and fleet renewal. We will apply technology and integrate public and private sectors, including using buses to transport goods to remote areas, and building workshops and repairs as businesses. Sea and air logistics hubs are also embedded in this Budget for initial implementation.

¶ 09 We have allocated Rs. 433 billion to give the economy a new momentum: Rs. 335 billion for roads, Rs. 22 billion for bridge rehabilitation, Rs. 24 billion for railways, Rs. 23 billion for the transport sector, and Rs. 15 billion for ports and airports. For ports and airports, we will engage the private sector. After decades, the long‑requested dry port is coming—e.g., in places like Wathupitiwala/Wayangoda—allowing cargo consolidation with Customs approvals to ease Colombo Port congestion. Based on production zones across the country, we can expand dry ports.

¶ 10 Historically, the British built railways to transport goods. Transport should be designed around production: How to move goods efficiently? In past decades, road development often occurred without a national plan. I invite the Opposition and public to contribute proposals to this new beginning. Advancing transport is a primary factor in economic revival and a production economy; without transport’s contribution, we cannot move the country forward.

¶ 11 Thank you, Hon. Presiding Member.