The Cabinet has approved the provision of more than Rs. 1 billion in equity capital to Lanka Metro Transit (Pvt) Ltd to expand its public transport operations and develop supporting infrastructure.

Lanka Metro Transit was incorporated on October 3, 2025, as a subsidiary of the Sri Lanka Transport Board (SLTB), with the objective of modernising public transport in the country.

The company has commenced a pilot urban transport service in Colombo using 10 low-floor buses imported under the Clean Sri Lanka programme.

According to the government, the progress of the pilot operation has demonstrated the commercial viability of the service and gained public acceptance.

Lanka Metro Transit is now planning to deploy another 112 low-floor buses from September.

To support the expansion, infrastructure including a fully equipped central workshop and modern bus depots at Kalangama, Kadawatha, Ratmalana and Homagama will be developed. Internal roads and bus parking areas are also expected to be upgraded.

The Cabinet has approved Rs. 800 million in equity capital for infrastructure development during 2026.

A further Rs. 267.5 million will be provided in 2027 for the company’s operations.

The proposal was presented by the Minister of Transport, Highways and Urban Development.