President Anura Kumara Dissanayake has proposed an allocation of Rs. 80 billion in the 2027 Budget for the first phase of a major railway electrification programme covering three key railway lines.
Delivering the 2027 Budget speech in Parliament today (12), the President said the Government planned to invest more than Rs. 1.2 trillion in electrifying the three railway lines as part of efforts to modernise the country’s railway network.
Under the first phase, Rs. 45 billion has been allocated to electrify the Kelani Valley Line between Maradana and Homagama.
A further Rs. 16.4 billion has been earmarked for electrifying the Main Line from Maradana to Ragama, while Rs. 17.7 billion has been allocated for the Coastal Line between Maradana and Panadura.
The allocation also includes Rs. 900 million for related operational expenses, including land acquisition.
Meanwhile, the President announced that Rs. 5 billion had been allocated to purchase five new trains, while another Rs. 2 billion would be provided in 2027 to renovate railway stations that have remained poorly maintained for an extended period.
Restoration of railway services
Addressing the restoration of railway services following damage caused by Cyclone Ditwah, Dissanayake said train services between Colombo and Peradeniya had resumed through the effective deployment of resources by the Department of Railways.
Rehabilitation work has also commenced on the railway sections between Rambukkana and Peradeniya, the Up-Country Line from Peradeniya to Gampola, and the Matale Line under India's loan assistance programme.
The Government expects train services to reach Kandy during the first quarter of 2027, while the full restoration of the Up-Country railway line, including services to Badulla, is expected by the middle of next year.
The President further announced a record allocation of Rs. 95 billion to modernise railway and passenger bus services, improve connectivity between transport networks and promote sustainable public transportation.

