Colombo, 14 August 2026 – In a significant move set to accelerate the modernisation of Sri Lanka’s urban transport sector, the Cabinet of Ministers, on August 10, 2026, approved a substantial equity capital infusion totalling over Rs. 1 billion for Lanka Metro Transit (Private) Limited (LMT).
The decision, officially announced yesterday, highlights the government’s commitment to enhancing public transport infrastructure and services, particularly in congested urban areas. The funding aims to bolster LMT’s ambitious expansion plans and develop crucial supporting infrastructure.
Lanka Metro Transit: A Vision for Modern Transport
Lanka Metro Transit (Private) Limited was established on October 3, 2025, as a vital subsidiary of the Sri Lanka Transport Board (SLTB). Its core mandate is to spearhead the modernisation of public transportation across the country, addressing long-standing issues of efficiency, comfort, and accessibility.
Pilot Success Paves Way for Major Expansion
The Cabinet’s approval comes on the heels of the successful completion of the Colombo Urban Transport Pilot Operations. These pilot services, initiated by LMT, deployed 10 state-of-the-art low-floor buses, purchased with funds allocated under the “Clean Sri Lanka Programme.”
Crucially, the pilot project has affirmed both the commercial viability and, more importantly, high public acceptance of the modern bus service. This positive reception has emboldened LMT to move forward with aggressive expansion. The company plans to introduce an additional 112 low-floor buses into service by September this year, significantly expanding its operational footprint and service frequency in key urban corridors.
Urgent Infrastructure Development Identified
To sustain and enhance these expanded operations efficiently, the need for robust infrastructure development has been identified as paramount. The approved equity capital will facilitate the urgent construction and development of several critical facilities, including:
- A fully-fledged central workshop in Ekala to ensure optimal maintenance and longevity of the modern bus fleet.
- New, modern bus depots strategically located in Thalangama, Kadawatha, Ratmalana, and Homagama, to streamline operations and reduce downtime.
- Development of essential internal roads and modern bus stands, improving accessibility and passenger experience.
Cabinet Sanctions Significant Equity Injection
The proposal, put forth by the Minister of Transport, Highways and Urban Development, received full Cabinet backing. The approved financial package comprises two key components:
- Rs. 800 million: Allocated as equity capital for Lanka Metro Transit (Private) Limited specifically for the development of the aforementioned infrastructure facilities during the current year.
- Rs. 267.5 million: Earmarked for the company’s operational needs in 2027, ensuring sustained and systematic service delivery into the future.
This substantial investment underscores the government’s commitment to transforming Sri Lanka’s public transport landscape, promising a more comfortable, efficient, and reliable commuting experience for citizens. The move is expected to not only ease urban congestion but also contribute to environmental sustainability through modern, low-emission vehicles.
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