SLTB to upgrade fleet as losses turn to profits

Tuesday, 17 July 2018 00:00 - - {{hitsCtrl.values.hits}}

By Chathuri Dissanayake

Sri Lanka Transport Board has managed to turn around its fate from a loss-making company, recording a profit of Rs. 1.5 billion in 2017 after settling overdue employment benefits, ending the loss-making trend over the last seven years, Deputy Transport and Civil Aviation Minister Asoka Abeysinghe said yesterday.

With plans to bring in a fleet of new buses by next year, the SLTB yesterday introduced a new system to book tickets online, including a new app for mobile devices. The Board is expected to call for tenders from Indian bidders for 500 buses to be purchased under an Indian line of credit. Another 1000 buses from Hungary with low floors will be brought down with investor funding, the Minister said, speaking at a media briefing held at the United National Party Headquarters, Sirikotha. Further, a Cabinet paper has been submitted to 750 hybrid buses and another 250 electronic buses will be in circulation to the country before April next year, he said.

“For the first time after years, we have made a profit - we had a loss of close to Rs. 15 billion from 2010 to 2014 EPF ETF, the total outstanding was at Rs. 15 billion. We have settled it, and now we are paying it properly, further there are over Rs. 10 million of fixed deposits held by every depot, the seven North Depots alone, there are over Rs. 200 million worth fixed deposits held,” he explained, detailing how the SLTB has managed to turn around its fate from a loss-making enterprise to record a profit.

“Except for the money given by the Treasury to subsidise transport for school children, and payments for transportation of Tri-forces, we have not taken money from the Government,” he said.

The SLTB implemented plans to trim its work force from 36200 workers for 5500 buses, where 4000 employees retired on a Volunteer Retirement Scheme with a freeze on new hires. Instead, now the Board hires drivers and conductors on a needs basis based on short-term contracts, the Minister said.

“Each bus depot will be responsible for hiring and paying these employees,” he said.

The Board has also disposed of unoccupied lands owned by SLTB, earning enough liquid cash to settle outstanding amounts on Employee Benefit funds. “This is how we have paid the Employee Provident fund and Employee trust fund outstanding amounts,” the Minister explained.

The Minister further said that the change in the fuel prices will cost the SLTB an additional Rs. 102 million, however, he added that the Government is not looking at changing the bus fares.

Admitting that the Government should be transparent about how fuel prices are being revised, the Minister said that the Government plans to publicise the pricing formula next week.