Tax hike likely to see surge in cheaper rail travel

When higher taxes are passed on to commuters from January, demand for rail travel is expected to rise, but the railways is not able to increase capacity.

"We don't have the capacity to extend our train services as the number of available seats and trains are limited,” said General Manager Railways (GMR) H.M.K.W Bandara. “We are focusing on the efficiency of our services rather than increasing the number of trains.”

He said there is already an increase in rail passengers because train tickets are cheaper than bus fares. For instance, a Rs 2,000 bus ride to Galle costs just Rs. 360 by train. And with VAT being imposed on petroleum and a host of motor-related goods from January, road travel could become costlier.

There will be greater demand for train travel with the VAT increase, predicted N. J. Indipola, Sri Lanka Railways (SLR) spokesman. And if diesel prices continue to rise, railways will also have to revise fares.

“Our current income is only sufficient to cover diesel cost,” Mr. Indipola said, adding that they need around 100,000 litres a day. The general manager confirmed that railways plans to increase the prices of tickets and season passes.

“The train ticket price doubled recently, but it’s still affordable,” said Mohammad Rajabdeen, referring to a previous fare revision. He is a public official who travels daily by train from Madampe in the Puttalam district. “It won’t be if they increase the price further.”

A host of other train travellers echoed each other in saying the train is cheaper. Some had season passes. One Kandy resident said the price of the intercity bus and train were similar, but that the latter was faster.

But Hasanthi Manikkuwadu from Panadura feared overcrowding might worsen and that people might be forced to choose the more expensive option of buses.

Meanwhile, Mr. Bandara said level crossings were the primary cause of train delays. “There is a level crossing at nearly every kilometre yet the public and politicians want more level crossings. This has become a major obstacle for train services.”

A committee has been appointed to oversee the reduction of level crossings and a Cabinet paper is being drafted. Mr. Bandara also proposed that provincial directors should provide guards at crossings. Railways plans to renovate the old mainline signalling system with a foreign loan amounting US$ 100mn.

The Kurunegala-Polgahawela track will be turned into a double line and renovation of the Kelani Valley line up to Nugegoda has begun. Separately, large boards will be installed near 40 signal locations that do not function, to prevent accidents.

Railways is urging commuters not to travel without paying their fares. They could be fined Rs 2,000.

“Around 25% of travellers do not buy tickets,” Mr. Bandara said.

The GMR is looking at having the Rs 2,000 fine increased through an Act of Parliament to Rs. 10,000. At present, staff have instructions to carry out spot checks twice a week.

Mr. Bandara also said commuters should not vandalise new train carriages — to stop writing on them, tearing up seat covers, even stealing bidet showers and taps from toilets and fans. “These do not belong to me, but to you,” he implored. “It is your duty to protect them.”

Petroleum, which was not subjected to VAT this year, will be taxed next year as fuel prices will be increased as follows.

LP 95 (octane) will be increased from Rs. 426.00 to Rs 502.68

LP 92 (octane) from Rs. 346.00 to Rs 408.28

LAD (auto diesel) from Rs. 329.00 to Rs 388.22

LSD (super diesel) from Rs. 434.00 to Rs 512.12