Cabinet today approved a 12.5 per cent increase in bus fares. Accordingly, the minimum fare will rise to Rs.10 to Rs.12 under the new price scheme.
Earlier this month, Cabinet approved a 6.56 per cent hike in bus fares, which did not see a rise in the minimum fare. The hike was effected following the increase in fuel prices.
However, private bus unions stated that this price increase was not enough and threatened to launch an island-wide strike. Unions wanted an increase of between 10-20 per cent.
Unions and the Government subsequently arrived at a compromise which saw bus fares being increased by 12.5 per cent.
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