NTC and private bus owners on collision course over proposed fare hike 

Lanka Private Bus Owners’ Association (LPBOA) and the National Transport Commission (NTC) are on a collision course over the proposed bus fare hike.The LPBOA has firmly said that bus fares will rise significantly in July, despite potential reductions in fuel prices around the Sinhala and Tamil New Year.

LPBOA Chairman Gemunu Wijeratne said that the private bus industry was currently operating at a loss of Rs. 3 per km. He argued that fare increases were unavoidable given the rising operational costs, including the reintroduction of VAT on buses and skyrocketing vehicle prices. He said that the annual bus fare revision, which takes place in April, June, and July, would see an increase in fares, regardless of the ongoing fluctuation in fuel prices.

“We met the Minister of Transport two weeks ago and made it clear that commuters should prepare for a fare hike in the coming months,” Wijeratne said. “This decision has been reached after an annual review, and the increase will come into effect from July.”

“Transport industry grapples with rising costs, and private bus operators continue to struggle to break even,” he said, adding that the industry’s broader financial challenges could not be ignored though there were some who hoped that falling fuel prices might alleviate some pressure.

In response to the LPBOA’s announcement, Sherini Athukorala, Director of Operations at the NTC, explained that any decision on bus fare increases ultimately lay with the Commission, not the bus unions.

“The process of determining bus fares is under the purview of the NTC. Regardless of what individual unions may propose, the final decision on fare hikes rests with the Commission,” she said.

By Dharmasena Welipitiya and Pradeep Prasanna Samarakoon