Dr Sarath Obeysekera

To 
Honorable minister 
Urban Canal Passenger Transport Pilot Project – Colombo & Suburbs
(Public–Private Partnership / BOT Model)

Proponent:
Dr. Sarath Obeysekera
Marine Engineer & Shipbuilding Specialist
Sri Lanka

1. Background & Rationale

The Colombo Metropolitan Region continues to face severe road congestion, rising fuel import costs, and increasing carbon emissions, despite major investments in road and rail infrastructure. At the same time, Colombo and its suburbs possess an underutilised network of canals, lakes, and waterways originally developed for flood control and drainage.

Urban water-based passenger transport presents a low-cost, low-emission, and rapidly deployable mobility solution that complements existing road and rail systems without requiring land acquisition.

Previous attempts to introduce canal transport did not progress beyond concept stage due to institutional fragmentation and procedural delays, rather than technical or economic infeasibility.

This proposal introduces a clearly defined, pilot-scale, PPP-based implementation model designed to overcome those limitations.

2. Project Objective

To implement a Phase 1 Urban Canal Passenger Transport Pilot Project in the Colombo Metropolitan Area within 12–18 months, using a Public–Private Partnership (PPP/BOT) model with no upfront Treasury funding, demonstrating technical, financial, and operational viability for future scaling.

3. Project Concept (Phase 1 – Pilot)

• Route length: Approx. 5–8 km (Beira Lake / Diyawanna / selected canal corridor)
• Service type: Scheduled passenger water transport
• Fleet:
  • 10–15 low-draft passenger vessels
  • Capacity: 20–30 passengers per vessel
  • Electric or hybrid propulsion
  • Locally designed and constructed in Sri Lanka
• Speed: 10–12 knots (low wash, environmentally safe)
• Stations: Simple modular pontoons integrated with existing urban nodes

The pilot is deliberately sized to ensure fast approval, fast delivery, and visible results.

4 Implementation & Governance Model

A Special Purpose Vehicle (SPV) will be established under a BOT / BOOT framework.

Roles:

• Private Partner (SPV):
  • Vessel design & construction
  • Operations & maintenance
  • Fare collection and service management
• Government / Public Agencies:
  • Canal access and regulatory approvals
  • Integration with urban transport planning
  • Oversight and performance monitoring

This model avoids day-to-day bureaucratic control while ensuring public accountability.

5. Financial Overview (Indicative)

• Capital expenditure: Funded by private sector / consortium
• Operating costs: Covered through fare revenue and ancillary income
• Government funding:
  • No upfront capital contribution
  • Possible viability support only if required after pilot evaluation
• Future funding eligibility:
  • Climate finance facilities
  • Multilateral urban mobility grants
  • Carbon credit mechanisms

6. Key National Benefits

• Immediate reduction in road congestion
• Lower fuel consumption and foreign exchange outflow
• Climate-resilient transport option
• Revitalisation of urban waterways
• Local shipbuilding and marine industry development
• Scalable model applicable to other cities (Negombo, Galle, Kandy lake zone)

7. Approvals Requested

1. In-principle approval for Phase 1 Pilot Project
2. Approval to proceed under PPP / BOT framework
3. Nomination of a single coordinating authority for fast-track clearances
4. Permission to establish the SPV

8. Conclusion

This proposal offers a practical, implementable, and financially disciplined solution to Colombo’s urban mobility challenges. It is designed as a pilot-first project, focused on delivery rather than prolonged study, and aligns with national priorities on economic efficiency, climate resilience, and private sector participation.

Regards

Dr Sarath Obeysekera