Train services are expected to reach Kandy within the first quarter of 2027, while the full rehabilitation of the Up-Country railway line and restoration of services up to Badulla are targeted for completion by mid-2027, President Anura Kumara Dissanayake announced.

Presenting the 2027 Budget in Parliament today (12), the President said railway rehabilitation work had commenced under India's loan assistance programme to restore and improve railway infrastructure damaged by Cyclone Ditwah.

The work covers the Rambukkana–Peradeniya railway section, the Up-Country railway line from Peradeniya to Gampola and the Matale railway line, with improvements being carried out in accordance with modern engineering standards to ensure safer and more reliable operations.

Train services between Colombo and Peradeniya have already resumed following restoration work undertaken by the Department of Railways using its available resources.

The President said the Government expected to fully rehabilitate the Up-Country railway line and restore train operations up to Badulla by the middle of 2027.

Meanwhile, Rs. 5 billion has been allocated to purchase five new trains for the railway service, while another Rs. 2 billion has been earmarked in 2027 to repair railway stations that have remained poorly maintained for a long period.

Rs. 95 Billion for Transport Sector Modernisation

The Government has allocated a record Rs. 95 billion to modernise railway and passenger bus services, strengthen connectivity between transport networks and promote sustainable public transport.

President Dissanayake said the Government intended to usher in a new era in the transport sector by providing an efficient and comfortable public transport service.

As part of the initiative to improve long-distance travel, steps have already been taken to import 600 air-conditioned buses to provide passengers with a more comfortable and safer service.

For rural transport services, Rs. 1 billion has been allocated to purchase 50 small buses with 22 seats, particularly for areas with narrow hill-country roads.

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