SL Transport Board incurs a massive loss of Rs. 3.8 billion
View(s):The state-run Sri Lanka Transport Board (SLTB) has incurred a massive loss of Rs. 3.8 billion while the Treasury has handed out Rs. 3.6 billion from tax income from the people to maintain bus services on loss-making routes, officials said.
Revenues of SLTB rose 25.1 percent to Rs. 26.3 billion as result of a 20 percent bus fare hike from February 2012, they added.
However operating expenses had risen 23.8 per cent to Rs. 30.1 billion, pushing operating losses up 15.5 per cent to Rs 3.8 billion in 2012 from Rs.3.3 billion in 2011, a senior official of the Finance Ministry revealed.
The Treasury had provided Rs. 2.2 billion to the bus service to operate ‘non-economical’ routes and Rs. 1.2 billion for ‘season tickets’ from taxes collected from the people, he said.
Most of the Sri Lankans are unaware that they themselves pay for subsidies enabling the authorities to maintain essential services such as transport, health and education he added.
The total number of SLTB buses had fallen from 7,821 to 7,750 despite new purchases due to the sale of 1,750 broken down buses to the private sector to operate, Transport Ministry sources said.
According to Finance Ministry data, the state bus service had 34,263 workers at the beginning of 2012, indicating that there were 7.8 workers per bus in 2012.
Meanwhile the US has built a public market and bus station in Batticaloa which will help economic activities in the area and also boost social integration and reconciliation among different ethnic communities, the US embassy in Colombo said in a media release.
The US Agency for International Development spent Rs. 60 million ($477,000) in grant aid on the project. “In addition, the new bus station will provide communities in Pullumullai and neighboring areas with a swift transportation service for their daily needs.”
The bus station, as well as the newly renovated access roads will improve transportation, and help children travel quickly and safely to school every day.
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