Economy

Government to launch suburban rail electrification project from 2027

Published

12 hours ago

June 5, 2026

Sri Lanka will begin a phased programme to electrify and modernise its suburban railway network starting in 2027, Deputy Minister of Transport and Highways Prasanna Gunasena announced.

It is reported that the initiative, developed on presidential instructions, will focus on two priorities: restoring damaged railway infrastructure and introducing an electrified commuter rail system.

Officials said immediate efforts will concentrate on repairing tracks to resume services quickly, followed by slope protection measures such as retaining walls and improved drainage to minimise landslide and weather‑related risks.

In the second stage, upgrades will target key commuter corridors including the Coastal Line, the Main Line via Polgahawela and Rambukkana, and the Kelani Valley Line.

Under the Colombo suburban rail modernisation plan, electrified services are scheduled to roll out from 2027 on the Fort–Ragama, Fort–Panadura, and Maradana–Makumbura routes. These lines will later be integrated into a wider suburban rail loop designed to ease daily travel into Colombo.

The project will introduce standard‑gauge tracks (4 feet 8.5 inches) and new electric trains to support frequent short‑distance services.

Officials emphasized that the metro‑style commuter rail cannot be rolled out in one go due to its scale and cost, and will therefore be delivered in stages.

The long‑term plan envisions a complete transformation of suburban transport, with full implementation expected to take between 10 and 15 years.

Economy

Sri Lanka’s inflation could rise to 7% amid Middle East conflict and higher fuel prices – CBSL Governor

Published

3 days ago

June 3, 2026

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Governor of the Central Bank of Sri Lanka (CBSL), Dr. Nandalal Weerasinghe, has warned that the country’s inflation rate could increase to 7% due to the ongoing conflict in the Middle East and rising global fuel prices.

Speaking on the “360” programme aired on TV Derana last night (01), Dr. Weerasinghe stated that although it was initially anticipated that the Middle East conflict would be resolved in the short term, its prolonged duration has had significant repercussions on Sri Lanka’s economy.

He noted that fuel prices have continued to rise, creating upward pressure on inflation. According to the Governor, inflation, which is currently projected at around 5.4% to 5.5%, is likely to increase further if present trends continue.

“We have observed a continuous increase in fuel prices, while consumer demand has not shown any significant decline. Therefore, there is a risk that inflation could move beyond 5% and even reach 7% if these conditions persist,” he said.

Dr. Weerasinghe explained that the Central Bank recently tightened its monetary policy as a precautionary measure to curb inflationary pressures. He added that reducing demand over the coming months would be essential to prevent inflation from accelerating further and to maintain economic stability.

Meanwhile, the Central Bank Governor emphasized that there are no restrictions on remitting legally earned funds to Sri Lanka through the formal banking system.

Economy

New GPS tracking feature introduced for Metro buses

Published

4 days ago

June 2, 2026

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Passengers can now monitor the real‑time locations and arrival times of Metro buses through the LMT GO mobile application, Deputy Minister of Transport Prasanna Gunasena said.

Speaking on the launch of the new facility, Gunasena noted that the GPS‑enabled service allows commuters to check when buses will arrive at their stops, view operating bus and fare details, and track estimated travel times to upcoming destinations.

He further said that the initiative is aimed at providing passengers with a more planned, convenient, and reliable travel experience.

The Deputy Minister urged commuters to download the LMT GO app to make use of the new service.

Economy

Sri Lanka Secures US$695 Million IMF Tranche

Published

1 week ago

May 28, 2026

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Sri Lanka has secured another US$695 million from the IMF after the completion of the fifth and sixth reviews of the country’s reform programme.

The IMF says Sri Lanka’s reform performance remains “generally strong” despite global challenges, but warned that the Middle East conflict and Cyclone Ditwah pose risks to economic recovery.