Sri Lanka bus firms approach crisis

Diesel prices have soared in Sri Lanka

Sri Lanka's bus firms are pressing the government to allow them to raise fares in order to cope with a huge rise in fuel costs.

If the changes are very significant, we can talk to the operators and agree a price formula

Susiri Wardana, Transport minister

The Sri Lankan government announced earlier this year that it would end certain price controls on food and fuel.

The cost of diesel fuel has gone up by 50% in the past 18 months, leaving the firms that operate lorries and buses, struggling to make ends meet.

The Lanka Omnibus Owners' Association describes the current system of bus fares as "hopelessly inadequate".

Uniformity

Susiri Wardana, secretary of the Ministry of Transport, which regulates bus fares, explained that fares were revised only once a year - in July.

But some bus firms say they may go out of business before then.

"If the changes are very significant, we can talk to the operators and agree a price formula," Mr Wardana told the BBC's World Service report.

"It would be an excellent situation if the bus fares were determined by the bus operators.

"But sometimes there needs to be some kind of uniformity throughout the country since transport is considered as a public service," he said.