The Cabinet of Ministers has approved a proposal to provide equity funding to Lanka Metro Transit (Private) Limited, allocating Rs. 800 million within this year and a further Rs. 267.5 million for operations in 2027.
The money will go towards infrastructure, including a central workshop at Ekala and modern bus depots at Talangama, Kadawatha, Ratmalana and Homagama, along with internal roads and parking yards, Cabinet spokesman Minister Nalinda Jayatissa said.
A company less than a year old
Lanka Metro Transit was incorporated on October 3, 2025 under the Companies Act No. 07 of 2007. It began Colombo urban transit pilot operations with 10 low-floor buses and plans to deploy 112 more in September.
The service has expanded steadily through the year, most recently reaching towards Jaffna and Kandy and introducing a Rs. 799 weekend travel pass.
Questions over the state’s role
Addressing concerns about public sector expansion and possible privatisation, Jayatissa said the new company was intended to strengthen existing transport structures rather than undermine them.
“Nothing like that will happen to the SLTB. What we are doing is strengthening the SLTB to make it efficient,” he said, referring to the state-run Sri Lanka Transport Board.
He said private operators would continue to run alongside state services. “It won’t be a problem for the private sector either; they can offer a competitive service.”
Jayatissa argued that easing congestion requires a shift away from dependence on private vehicles.
“The best method tested so far to reduce urban traffic congestion is to strengthen public transport — not to have everyone drive individual private vehicles into cities,” he said, adding that park-and-ride facilities are being built to support commuters.
Source: Sri Lanka approves Rs1.06bn equity for Metro Transit — EconomyNext, August 11.
