Description
Sri Lanka Railways has become emblematic of the deep-rooted governance failures affecting public service delivery in the country. While the 2023 online ticketing scam involving tourist routes such as Ella and Kandy drew national attention, with tickets sold out in seconds and resold at up to 20 times their value, it is only one part of a broader pattern of institutional decay, corruption, and mismanagement.
The National Audit Office and investigative journalism have revealed a wide range of systemic problems: improper issuance of free train passes to politically affiliated trade unions resulting in losses exceeding Rs. 25 million; illegal leasing of train compartments for private use; widespread misuse and mismanagement of scrap metal and railway assets; delays and cost overruns in infrastructure projects; and poor train scheduling performance, with fewer than 30% of trains running on time.
Trade unions have publicly accused department leadership of colluding with political figures to enable financial misconduct, illegal outsourcing of services, and suppressing internal dissent. Additionally, procurement fraud, absence of transparent financial controls, and political interference in appointments and operations have severely weakened the integrity and efficiency of Sri Lanka Railways. These issues not only drain public resources but erode trust in the state’s ability to provide affordable, reliable public transportation.
An Auditor General report in 2023 identified misuse of 22 free train passes issued to trade unions, resulting in revenue losses of approximately Rs. 25.3 million and noted systemic inefficiencies. Trade unions have also lodged formal complaints with the Bribery Commission over improper outsourcing, illegal private compartment leasing, and mismanagement of scrap assets within the Railway Department.
What is the corruption
- Reserved tickets for popular up-country routes, such as Ella and Kandy, were reportedly sold out within 42 seconds of online release, indicating insider manipulation of the ticketing system.
- Tickets priced at around Rs. 2,000 were reportedly resold for up to Rs. 16,000 on the black market, primarily targeting foreign tourists.
- A Railway Department technical officer was arrested in Trincomalee with 92 e-tickets intended for resale, while another individual in Kandy was found with 29 e-tickets and over Rs. 130,000 in cash.
- The Criminal Investigation Department (CID) arrested four individuals and continues to investigate the involvement of other railway officials.
- Free train passes meant for official use were allegedly misused by politically affiliated trade unions and insiders, causing substantial losses to the state.
- The outsourcing of railway services was carried out without transparency, and compartments were allegedly leased for private gain without proper authorization.
- Scrap metal and other railway assets were allegedly disposed of without following due process, raising concerns of fraud and asset misappropriation.
- Chronic inefficiencies in railway operations such as persistent delays, underperforming infrastructure, and poorly monitored budgets have led to significant financial losses.
- These incidents reflect a wider breakdown in governance, marked by weak oversight, unaccountable procurement practices, and political interference in management and staffing decisions
What has been done
- CID identified and arrested multiple suspects including railway technical officers and external brokers related to the ticket racket; court ordered expedited investigation into possible internal complicity.
- Parliamentary agencies, including the Department of Transport and COPE/COPA, are probing the misuse of passes and the online reservation breach.
- The Auditor General’s report publicly documented mismanaged passes, procurement anomalies, and service delays, provoking institutional scrutiny.
- Rail unions filed complaints with the Bribery Commission regarding outsourcing abuses and mismanagement in the department.
What can be done
- Ensure CID completes its investigation, and transparently prosecutes all implicated, railway insiders and third-party brokers alike.
- Introduce and enforce strict technical controls in the ticketing platform: rate limits, captcha verification, automated anomaly detection, and identity validation.
- Reform free pass issuance to include audit trials, eligibility criteria, and periodic oversight.
- Mandate open competitive bidding and full disclosure for outsourced services, infrastructure, and asset disposal.
- Enhance monitoring: real-time ticket sale analysis, train punctuality data tracking, and procurement audits.
- Strengthen internal oversight bodies, whistleblower protection policies, and public oversight engagement in rail governance.
- Hold senior railway and political leaders to account if found to have enabled or protected corrupt practices.
Links
Upcountry train e‑tickets scam: Ticket ‘reselling’ trio nabbed in Kandy, Trinco, Matale – The Morning
https://www.themorning.lk/articles/Ncde0bJlsVCXjY4kj9Su
CID probes online train ticket resale scam – Onlanka
https://www.onlanka.com/news/cid-probes-online-train-ticket-resale-scam.html
Train e‑ticket scam: CID briefs Colombo court – NewsWire
https://www.newswire.lk/2025/01/29/train-e-ticket-scam-cid-briefs-colombo-court/
Railway officer suspended for train ticket scam – Tickets sold at exorbitant prices to foreigners – Mawratta News
https://mawratanews.lk/news/railway-officer-suspended-for-train-ticket-scam-tickets-sold-at-exorbitant-prices-to-foreigners/
Probe launched into Ella online train ticket ‘mafia’ – Ceylon Today
https://ceylontoday.lk/2025/01/17/probe-launched-into-ella-online-train-ticket-mafia/
SLTB incurs Rs. 43 mn loss, Railways Rs. 25 mn – Sri Lanka Mirror
https://srilankamirror.com/news/sltb-incurs-rs-43-mn-loss-railways-rs-25-mn/
Audit report unearths multiple issues that ail the rails – Sunday Times
https://www.sundaytimes.lk/250216/news/audit-report-unearths-multiple-issues-that-ail-the-rails-588019.html
Audit to be conducted on financial loss incurred due to train cancellations – Ada Derana
https://www.adaderana.lk/news/109421/audit-be-conducted-on-financial-loss-incurred-due-to-train-cancellations
Audit report (internal reference) https://www.naosl.gov.lk/web/index.php/en/site-audit-reports?keywords=Special+Audit+Report&years=&audit_types=§or=&task=pdfdoc&option=com_pdfdoc
