OPINION-Policy recommendations for the adoption of Sustainable Mobility in Sri Lanka

By Sheran Fernando

The President chaired the Cost of Living Committee and released a media statement dated June 13 focusing on the need to increase fuel prices. The release also reiterates the President and his Government's commitment towards "a climate resilient economy". The purpose of this article is not to debate the relationship between the increase of fuel prices and inflation and also the social cost of this policy, but to showcase how the adoption of sustainable mobility can benefit Sri Lanka.

The benefits that can be achieved are a significant reduction in carbon emission, a reduction in congestion and over a period of time, a very material reduction in the import cost of fuel. The release quoted the below statistics;

Import expenditure of fuel for transport - US$ 1.38 billion in 2020 (US$ 4 billion in 2018 as oil prices were higher and mobility was higher in a pre-pandemic world)

High import expenditure on motor vehicle imports - approximately US$ 1 - 1.5 billion per year

Increasing levels of pollution

Restructuring mobility can be viewed from the perspective of decarbonisation and congestion reduction (which will be achieved through increased efficiency in vehicle usage), which will lead to a reduction in the total vehicle import expenditure).

Below are some simple strategies that can be implemented immediately and with no significant investment required. The required investment will qualify for subsidised credit from numerous agencies that lend money for decarbonisation.

Decarbonisation of Mobility

When the vehicle import ban is lifted, only permitting electric vehicles pertaining to HS Codes 8703 (passenger motor vehicles)

For lorries and busses imported under HS Codes 8702 and 8704, ensuring mandatory compliance to EU6 emission standards

The Government to take responsibility to add renewable energy to the National Grid, in such a volume to ensure that electric vehicle charging does not lead to increased levels of fossil fuel consumption in the production of energy

Adopting highway solarization - a system of creating solar panels over national highways, that will capture energy and also reduce solar radiation, a strategy patented by Dr. Somaratna

Adopting emission reduction strategies such as clean fuel additives and products that can be retro fitted to existing vehicles that reduce levels of emission

Making emission testing mandatory for all vehicles that are licensed to run on roads and make the pass level more stringent over time

Encouraging the conversion of ICE vehicles to EV, using subsidized green grants to reduce the cost burden on this conversion to the owner

Encouraging the export of ICE vehicles that are over ten years old

Strategies to reduce the number of vehicles on roads (Electric Shared Mobility)

Shared mobility could be defined as mobility solutions that are commonly used and not owned by the user of the service. Shared mobility includes public transport, taxies and digitised ride sharing applications such as Uber and Pick Me. One ride sharing vehicle is estimated to replace 32 privately owned vehicles in an American based urban study. Thus, promoting shared mobility reduces the total expenditure on vehicle imports and also eases city congestion. All shared mobility vehicles could be electric. Strategies to promote the use of shared mobility vehicles are listed below;

Electric shuttle buses for intra city commuting

City entry tariffs levied at the seven entry points into the city of Colombo. This system could differentiate costs for Internal Combustion Engines (ICEs) and Electric Vehicles (EVs)

A multi-tiered vehicle 'Revenue License' could be introduced, to charge more for privately owned (non-shared) vehicles that are permitted to run during peak hours.

ICE and EV can be differentiated in terms of revenue license costs

Availability of car parking at city entry points

Digital Traffic and Incident Management - increase the energy efficiency of travel by reducing the traffic build up

The article concentrates on strategies to decarbonise transportation in an intra-city context. Inter-city decarbonisation should be studied based on an evaluation of the newest available technologies. Sri Lanka can consider herself lucky that she has not invested in the upgrading of her inter-city transport infrastructure, because this enables her to leap-frog to the latest technology. The cost efficiency of these technologies could prove that they are justifiable and beneficial.

At the end of the day, the Sri Lankan economy must attract Foreign Direct Investment (FDI), which will bring in high tech manufacture that will boost our exports and thus address our Balance of Payments Deficit. One could argue that FDI is attracted by a host of qualitative factors such as business confidence, the ease of doing business, and the National policy framework. Efficient sustainable mobility supports all these factors.

(The writer is a Co-Founder of Innosolve Lanka (Pvt.) Ltd, a start-up dedicated to introducing sustainable mobility solutions in Sri Lanka. He is an economist by training with wide commercial experience, including 20 years in the automotive industry. He belongs to the alumni of Harvard Business School (OPM53)).