📈 Sri Lanka Expressway Tolls Generate Rs. 11 Bn Net Revenue

A recent analysis highlights the success of Sri Lanka's expressway user-pay model, which has generated Rs. 11 billion over and above maintenance costs, contrasting sharply with heavily subsidized state transport sectors like aviation, railways, and the SLTB. • Overall Figures & Revenue: Expressways generated Rs. 11 billion in annual net revenue after accounting for maintenance. This self-sustaining operational model prevents an estimated Rs. 5 billion annual maintenance burden on national treasury taxpayers. • Vehicle & User Breakdown: Out of Sri Lanka's 8.8 million vehicles (2025 data), 6.4 million two- and three-wheelers are prohibited from expressways. Only about 2 million eligible vehicles benefit, ensuring that only actual users pay for maintenance rather than the general public via fuel or income taxes. • Capital Costs & VGF: The Rs. 11 billion net revenue remains a small fraction of the massive initial capital costs. Because expressways were deemed unviable for pure Public-Private Partnerships (PPPs), construction relied on concessional loans justified by economic externalities like tourism transport and efficient supply chains, utilizing Viability Gap Financing (VGF). • Future Urban Policy: Analysts recommend expanding the user-pay principle to eliminate operational subsidies for long-haul trains. Conversely, for urban areas, it proposes introducing Singapore-style "congestion pricing" and cost-reflective parking fees as sticks, alongside subsidized, high-quality public transport as carrots to curb pollution and traffic.