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The transport ministry will auction 100 school bus franchises in January, to operate a subsidised service for students in Colombo. The pilot project will test the waters for auctioning all route permits, under the Ministry’s long term strategy to regulate the industry.
Operators will charge 10 percent of the fare, with the State footing the balance on an operational cost based formula.
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The franchises will require minimum service standards and strict time commitments before tapping the State for the balance fare.
The franchise holders will also be allowed to operate other routes during none school hours.
Transport Ministry officials say school season ticket utilisation was down at 15 percent due to the low ply of State buss and their irregular schedules.
Overall Sri Lankan busses also ranks low on productivity with the average distance covered per day at 120 kilometres against an international average of over 200 kilometres.
Officials say traffic and the extended idling