State bus company to reduce Treasury dependency
View(s):The Sri Lanka Transport Board (SLTB) is using a judicious mix of privatising some sections and leasing its land to secure income in preparing a policy to reduce dependency on Treasury support.
Under the strategy institutions functioning under the SLTB would more autonomous and be less dependent on the Treasury with the passage of time, SLTB sources said.
These decisions were taken at a meeting held in Narahenpita, Colombo recently with the attendance of top level officials of SLTB and representatives of audit firm, PricewaterhouseCoopers Lanka Ltd (PwCL). Sections of the SLTB including regional transport boards, driver training schools, regional workshops and training centres would be converted to a companies under the proposed Public Sector Management and Administration Reforms Bill (still with the legal draftsman) and given on management contracts, a senior SLTB official disclosed.
SLTB land would be leased out or sold to private sector to make use of it profitably, he said.
He also believed that the process of restructuring in these institutions should be pursued with as some of these institutions were falling back to the old groove, being dominated by the state run psyche.
In the budget 2012, a sum of Rs. 3.17 billion was allocated to the board on account of providing school bus services, state services and for being engaged in operating non-profit oriented routes, Treasury sources said.
In addition to the buses purchased on lease arrangements, Rs. 880 million has been allocated to purchase new bus engines in support of the operations of the board.
In order to improve transport facilities in rural areas a further Rs. 500 million will be allocated to provide 200 buses, sources revealed.
A Treasury official said spending of this massive amount of money was not sustainable as it will affect the health of the government balance sheet.
He said structural reforms in the public transport sector that generate productivity-induced increases in income levels are necessary to enable the population to absorb more easily the international prices of oil and other goods.
(Bandula)
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