Public confidence in Sri Lanka Railways has been undermined by institutional failures, alleged systematic corruption and widespread irregularities, according to audit reports and investigations.
Findings by the National Audit Office, investigations by the Committee on Public Accounts and inquiries conducted by the Commission to Investigate Allegations of Bribery or Corruption have highlighted alleged corruption, financial irregularities and revenue losses within the railway service.
In July 2025, during the auction of 6,000 metric tonnes of iron and railway carriages valued at around Rs. 1 billion, senior officials allegedly allowed favoured bidders to unlawfully alter documents after the tender boxes had been opened. The Commission to Investigate Allegations of Bribery or Corruption has reportedly launched an investigation into the matter.
According to the 2026 financial audits, more than twice the amount allocated for the maintenance of the railway network is reportedly being spent on salaries and overtime payments.
The audits have also reportedly revealed that locomotives and railway carriages imported from overseas at a cost of millions of US dollars have been left unused and deteriorating due to incompatibility with Sri Lanka’s railway track specifications and technical defects.
Valuable assets and land, including the Viceroy II luxury carriage, have reportedly been leased to the private sector, while adequate measures have allegedly not been taken to recover millions of rupees in outstanding lease payments.
Meanwhile, weaknesses in the online ticketing system for popular and tourist routes, coupled with alleged interference by internal officials, have reportedly resulted in tickets selling out within seconds and subsequently being resold at inflated prices on the black market through intermediaries.
It has also been alleged that free travel passes have been unlawfully issued to certain individuals based on political and trade union connections, resulting in the loss of millions of rupees in annual revenue to the railway service.
Internal disputes over overtime limits have also reportedly caused delays in the distribution of season tickets.
As a direct consequence of these alleged corruption and irregularities, the efficiency of the railway service has been severely affected. It has been alleged that more than 70% of currently scheduled train services are either operating with delays or being suddenly cancelled.
