Mixed performance in transport sector in 2012: CB says
View(s):The 2012 Central Bank report recorded unusual trends in the transport sector with the registration of new motor vehicles decreasing sharply in 2012 compared to 2011.
The number of new vehicles registered in 2012 reduced by 24 per cent with the number of cars registered decreasing by 46 per cent compared to 2011. The number of buses and three wheelers registered fell by 27 per cent and 29 per cent, respectively. These declines are largely attributed to the rise in excise duties on imported motor vehicles which has dented demand for imported vehicles.
Yet despite this recent drop the report also reflects an overall increase in the number of registered vehicles over the last decade. Most notably is an increment of 171 per cent in the number of registered three-wheelers between 2003 and 2012, a figure which far outstrips the increase in the number of private cars (48 per cent) or buses (118 per cent) during the same period.
Significant progress was attained in the transport sector in 2012 primarily due to the enlargement of the existing road network. This has in turn led to greater regional connectivity and simultaneously boosted business activity by providing suppliers with wider market access.
However the report goes on to admit that while road and air transportation experienced growth in 2012, “growth in sea port activity remained sluggish”, a reflection of the slow pace of economic recovery from the financial crisis of 2008.
Moreover the Sri Lanka Transport Board (SLTB) too incurred an operational loss of Rs. 3.8 billion in 2012 indicating somewhat of a trend in all of Sri Lanka’s state agencies.
On the other hand rail transportation took a comparatively positive turn with the operating loss of Sri Lanka Railways decreasing from Rs. 4.1 billion in 2011 to 3.8 billion in 2012. Yet the future prospects of state agencies remain far from promising as this report clearly reveals.
(SP)
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