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| Sunday, 16 June 2002 |
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Business |  |
| News Business Features Editorial
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Decentralisation the answer to soaring fuel bills by Elmo Leonard Most of it was used for local transport needs. According to economic analysts, such expenditure is a colossal waste of the nation's vital economic resources. Sri Lanka spent US$ 700 million on petroleum imports in 2001. Most of it was used for local transport needs. According to economic analysts, such expenditure is a colossal waste of the nation's vital economic resources. On working days, 250,000 vehicles enter Colombo. This means that a million people, including schoolchildren travel to the capital every weekday. Colombo and the principal towns need decentralisation, a glimpse of which was seen in the 1980s with the opening of Sri Jayawardhanapura. Planners should even at this late stage give due importance to curb needless travel, says engineer Ananda Ponnamperuma. During his working career, Ponnamperuma had experienced restrictions on day-to-day travel imposed by cities of other countries. An exact figure for the fuel expenditure of public transport is not available. Nevertheless, the Sri Lanka Transport Board used Rs 3.2 billion worth of fuel last year. In contrast, the Railway Department's fuel expenditure stood at Rs 925.8 million. In 2001, filling stations sold diesel worth Rs 35.8 billion, most of which would have gone into public transport. Since the Sapugaskanda Oil Refinery cannot meet the country's growing need for diesel, US$ 250 million was spent on importing diesel last year. Sri Lanka's petroleum needs grow six per cent per annum. Diesel requirements increase by 10 per cent each year. The rising cost of petroleum in the world market and the depreciation of the Sri Lankan Rupee against the US Dollar has further eroded vital foreign exchange. Sri Lanka's population is largely concentrated in the Western Province. An unprecedented number of schools have opened in the city of Colombo. The decentralisation of schools, government departments, courts and industries would result in socio-economic benefits to the rural sector, Ponnamperuma said. If half a million adults and children who enter the City each day, could be siphoned into the rural sector to carry out their businesses, a minimum of Rs 17.5 million per day could be saved by way of transport and food purchased in the city. This figure would add up to Rs 4.2 billion per year. This money would remain within the rural sector. CAPTION |
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