Value Destruction

Mar 28, 2013 (LBO) - Sri Lanka's transport sectors is estimated to contribute to 10 percent of the gross domestic product, but its shortcoming including accidents, traffic jams and delays cost 200 billion rupees, an expert has said.

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"However about 30 percent is lost due to accidents, congestion, lost time in public transport and damaged goods amounts to 200 billion rupees a year."

Kumarage, a top transport sector researcher said the cost of accidents was estimated at 32 billion rupees a year, cost of congestion 40 billion rupees, the cost of lost time in public transport was estimated a 30 billion rupees.

Cost of losses in supply chains was estimated at 100 billion rupees.

Last year public sector investments in transport sector was 190 billion rupees (about 3-pct of GDP) while the private sector has spent about 100 billion rupees (about 1.5 percent of GDP).

These included 15 billion rupees in trucks, 2.0 billion rupees in buses, about 18 billion rupees in taxis and three wheelers and 5.

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0 billion rupees.

Kumarage said people are expected to reduce standard bus travel in the future and quality urban transport using bus rapid transit (BRT), rail based mass transit (MRT/LRT) was essential to prevent gridlock in