President Anura Kumara Dissanayake has announced a record allocation of Rs. 95 billion to modernise Sri Lanka's railway and passenger bus services, expand public transport networks and improve passenger convenience under the 2027 Budget.

Presenting the Budget in Parliament today (12), the President said the Government expected to usher in a new era in the transport sector by establishing an efficient, comfortable and sustainable public transport system.

A major feature of the programme is the expansion of the Metro Bus service, which was introduced in the Colombo area this year, to the urban centres of Kandy, Galle and Jaffna.

More than 120 Metro Buses are currently in operation, with another 50 buses scheduled to be added in 2027.

The Government also plans to introduce electric buses, with 100 buses expected to be received as a donation from the Government of China.

An allocation of Rs. 4.5 billion has been made for the construction of depots, installation of charging facilities and provision of training required to operate the electric bus service.

The Government will also encourage private bus operators to introduce modern low-floor buses by replacing existing vehicles, while retaining their route permits.

Meanwhile, steps have already been taken to import 600 air-conditioned buses to improve comfort and safety for long-distance passengers.

To strengthen rural connectivity, Rs. 1 billion has been allocated to purchase 50 small buses with 22 seats for areas with narrow and difficult hill-country roads.

A further Rs. 4 billion has been allocated to obtain 200 buses with 33 seats for passenger services in rural areas.

Rs. 7 Billion for Digital Transport Services and Road Safety

The Government has also proposed several digitalisation initiatives to improve transport administration and road safety.

An allocation of Rs. 200 million has been made for the Digital Transformation and Integrated Management Systems Development Project of the Sri Lanka Transport Board.

Another Rs. 600 million has been allocated to establish the Department of Motor Traffic at its Werahera premises to improve public services.

The Budget also provides Rs. 700 million to establish a modern digital system for vehicle registration and ownership transfers, with the aim of ensuring more efficient and transparent services.

In addition, Rs. 1.5 billion has been allocated to introduce a digital Driver Demerit Points System and a road safety enforcement system integrating the Department of Motor Traffic and Sri Lanka Police to reduce road accidents.

Rs. 5 Billion for Five New Trains

The railway sector will receive a major investment, with Rs. 5 billion allocated to purchase five new trains.

A further Rs. 2 billion has been allocated in 2027 to repair railway stations that have remained poorly maintained for an extended period.

The President also provided an update on the restoration of railway services following the damage caused by Cyclone Ditwah.

Train services between Colombo and Peradeniya have resumed following restoration work carried out using the resources of the Department of Railways.

Under India's loan assistance programme, rehabilitation work has commenced on the Rambukkana–Peradeniya railway section, the Peradeniya–Gampola section of the Up-Country railway line and the Matale railway line.

The Government expects train services to reach Kandy within the first quarter of 2027.

Full rehabilitation of the Up-Country railway line, restoring train services up to Badulla, is expected to be completed by the middle of 2027.

India and China Assist in Cyclone Damage Rehabilitation

President Dissanayake also outlined international assistance being provided to restore infrastructure damaged by Cyclone Ditwah.

India has extended assistance for infrastructure rehabilitation, housing and water supply projects, the reconstruction of 13 bridges, including the Moragahakanda Bridge, and the construction of Bailey bridges.

The assistance also covers the health and education sectors.

Meanwhile, under China's cyclone damage rehabilitation programme, grant assistance has been arranged for the reconstruction of 14 destroyed bridges, with rehabilitation work prepared for nine bridges across the Gampaha, Kegalle, Ampara, Kurunegala, Polonnaruwa and Batticaloa districts.