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500 mn, but increasing recurrent costs could keep losses high.
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An August 01 railway fare hike will cut the commuter service’s losses by an estimated Rs. 500 mn, but increasing recurrent costs could keep losses high. Railway’s General Manager Priyal de Silva on Tuesday said the government approved a new four tier fare to replace the earlier two tier ticket charge with effect from August 1.
Under the new fare structure the first 50 kilometers will be charged at the rate of 53 cents, the second 50 kilometers at 49 cents, while distances between 100 and 200 kilometers will be charged at 48 cents per kilometers and commuters in for the long haul over 200 kilometers journey will be levied 46 cents per kilometer.
The new fare also ignores and earlier rule which set the Fort Railway station as the base for calculating distances and fares, instead calculating distance in kilometers from the station where the commuter begins the journey.
De Silva said the fare increase will cut its losses by an estimated Rs.
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500 million.
The railway’s posted revenues at