Investment Opportunities in the infrastructure sector
As per World Bank, Sri Lanka has South Asia’s most extensive road network, with 173.9 km of highways per 100 square kilometers of soil as of 2016. The road network of Sri Lanka consisted at the end of 2018 of 12,220 kilometers of Class A and Class B highways and 170 kilometers of expressways. The rail network, mainly a legacy of British colonial rule, covers only a tiny fraction of the transportation requirements of the country.
Rail facilities are mainly accessible for goods transport for passengers with very little ability. Modern norms make traveling on the rail incredibly slow. In Colombo and Hambantota, there are navigable waterways, harbors, and two international airports. The absence of non-military airports outside Colombo restricts in-country air service availability.
The reduction of congestion in Colombo was another important goal for the highway network. Budget 2017 included plans for the city’s roads linking Kelani Bridge to the region of Port of Colombo and Athurugiriya.
Colombo Port City’s growth also presents obstacles to the road network, with plans to develop business and residential property adding to congestion in downtown. The primary highways around the nation are in good condition, but they are not an effective means of transportation and transport as the bulk of roads are single lanes in each direction without a divider.
There are two roads to Colombo from Katunayake airport and southern areas of the nation from near Colombo. A highway is also being built to the central province.
The prospects for the land transportation sector in Sri Lanka are looking to expand further, with more effective road and rail facilities coming online. However, plans need to be coordinated with the scheduled development initiatives for significant urban development in and around Colombo.
OSL Take:
The Ministry of Transport has put together several projects for the building and expansion of new highways and railways. The Sri Lankan government has continuing plans to build a new international airport terminal at Colombo International Airport and plans to build a new international airport in the longer term. The government also intends to create regional airports further.
Sri Lanka is also continuing to upgrade its current seaport infrastructure in both Colombo and the provinces of the south and east. In June 2018, the Ministry of Megapolis and Western Development announced the start of land acquisition needed to build a fully raised Light Rail Transit (LRT) scheme in Colombo.
The Japan International Cooperation Agency (JICA), the government agency that coordinates the Government of Japan’s formal development assistance, is anticipated to provide a $1.7 billion loan to the project, according to ministry officials.
| Article Code : | VBS/AT/08102019/Z_T2 |