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Navigating Economic Prosperity Through Sri Lanka's Inland Waterways

Introduction

Maritime transportation refers to the movement of goods and people via sea routes, rivers, and other navigable waters. It is a vital component of the global economy, and it facilitates around 90% of world trade by volume. (UNCTAD, 2023) This mode of transportation is especially efficient for moving large quantities of goods over long distances, making it indispensable for economic development. Maritime transportation includes various forms, such as ocean shipping, coastal shipping, and inland water transportation.

Inland Water Transportation (IWT), a subset of maritime transportation, involves the use of rivers, canals, and lakes for the movement of goods and passengers. Although this mode of transportation holds significant potential, it is currently underutilized in many countries, including Sri Lanka. Although Sri Lanka has an extensive internal irrigation system, it is currently underutilized.  If this hidden resource is used efficiently, it will bring a new breath to Sri Lanka's logistics sector and economy. This paper is intended to show that these inland waterways, like the brave queens of the ocean, have the power to become an essential force in driving our economy forward.

Recent Usages of Inland Water Transportation in Sri Lanka

Currently, Sri Lanka’s inland water transportation is limited and primarily serves a few key areas

  • Passenger and Cargo Transport

In 2019, a passenger boat service was started from Union Place to Colombo Fort across the Beira Lake as a new mode of urban transport to reduce the traffic congestion in Colombo. (Daily Mirror, 2023)

The passenger boat service on the Beira Lake (Onlanka, 2019)

In 2020, another passenger boat service was started between Wellawatte and Battaramulla providing the facility to travel in 30 minutes. It starts from Diyatha Uyana, going past Nawala and Kirulapone, and ends at the Savoy Cinema in Wellawatte along the Colombo’s canals. (Daily FT, 2020)

Boats enroute to Wellawatte (Daily FT,2020)

Regrettably, it must be emphasized that although these projects have been started, they are currently not being implemented. However, in the year 2024, the Kelani River has been used several times to transport large project cargo. (Fiberglass_composite boat building_Srilanka,2024)

Transportation of goods using barges across the Kelani River (Fiberglass_composite boat building_Srilanka,2024)

  • Tourism

Inland waterways are utilized significantly for tourism activities such as river safaris, boat tours, and leisure cruises. The Madu Ganga River Safari is a popular attraction, showcasing the rich biodiversity of the Madu Ganga wetland. Apart from this, tourist boat services are also operating in areas like Negambo Lagoon, Pulmude Lagoon and Galle.

  • Fisheries and Irrigation

Inland water bodies support the local fishing industry and agriculture through irrigation, contributing to food security in the country.

Now you can see that the potential of inland waterways for commercial transport is largely untapped. The lack of infrastructure, policy support, and integration with other modes of transport appear to be significant obstacles to fully utilizing these waterways. Despite these constraints, the implementation of the concept of freight transportation through these inland waterways can offer cost efficiencies as well as environmental benefits.

The Economic Prosperity of Properly Implementing Inland Water Transportation

If Sri Lanka successfully installs a well-developed inland water transportation system, it could catalyze significant advancements in the shipping sector and the broader economy.

  •   Enhanced Shipping Sector Efficiency

Inland waterways can serve as an efficient feeder system for ports in the transport of freight as they connect coastal areas with the interior of the country. By connecting inland waterways with major ports, Sri Lanka can create a seamless multimodal transport network that facilitates the swift movement of goods from ports to inland destinations. This could reduce port congestion and streamline logistics operations, boosting the overall efficiency of the shipping sector.

  •     Economic Growth and Job Creation

Development of IWT can create jobs in related industries such as construction, maintenance and operation of waterways, ports and terminals, as well as vessel building and logistics services.  This can lead to economic diversification and reduce dependence on traditional sectors such as agriculture and textiles and stimulate the local economy.

Moreover, the development of IWT networks will improve connectivity between rural and urban regions, facilitating easy movement of bulk commodities like agricultural products, coal and other goods.  This will help raise the income of rural communities, reduce urban-rural economic disparities, and promote overall economic growth. Also, improved connectivity will contribute to Sri Lanka's increased trade volume and better integration into regional and global trade networks. 

  • Cost and Environmental Benefits

IWT is significantly more cost-effective and environmentally friendly than road and rail transport. When using barges for this transportation, towboats push barges lashed together to form a “tow”. A tow usually consists of 4 or 6 barges on small waterways. 15- barge tow is used for transportation in larger rivers. Such tows are an extremely efficient mode of transportation, moving about 22,500 tons of cargo as a single unit. As the following figure illustrates, a single 15-barge tow is equivalent to about 225 rail cars or 870 tractor-trailer trucks. 

On average, a gallon of fuel allows one ton of cargo to be shipped 59 miles by truck, 202 miles by rail, and 514 miles by barge. Now you can understand how cost effective and fuel efficient this IWT concept is. (U.S. Army Corps of Engineers, n.d)

According to the World Development Report 2024 of World Bank, by shifting a portion of freight transport to inland waterways, Sri Lanka can achieve significant cost savings and lower its carbon footprint. (World Bank, 2021) And through this, environmental benefits such as reduced air pollution from fuel combustion and noise pollution open the doors to a sustainable green economy. This may also help to attract environmentally friendly businesses and investors in the future.

  •  Tourism and Cultural Preservation

    • Sri Lanka's inland waterways already attract domestic and international tourism.  If further developed these inland waterways can become a major attraction for tourists and provide river cruises, eco-tourism and cultural experiences. This can generate sizable revenue, especially if integrated with broader tourism strategies that highlight Sri Lanka's natural beauty and heritage sites.

    Hamilton Canal: A Forgotten Asset with Untapped Potential

    The Hamilton Canal, also known as the "Dutch Canal," has historical significance as one of Sri Lanka's inland waterways, serving as a valuable resource for commercial goods and passenger transport.  This 14.5 km long canal connects Colombo and Puttalam and flows through Negombo.  However, today it has become a forgotten asset and is only underutilized for transportation purposes.  Reactivating the Hamilton Canal and developing it as an alternative transport route can bring significant benefits to Sri Lanka's economy.  Because by rehabilitating and modernizing the canal, Sri Lanka can create a new transport corridor connecting the western coastal region to Colombo, reduce traffic congestion and provide an alternative route for freight transport.  The canal's proximity to Colombo port provides opportunities for its integration into the wider maritime logistics network, increasing the efficiency of cargo movement between the port and inland destinations.

    Conclusion

    The revival of Sri Lanka's inland water transport assets is a critical component of Sri Lanka's prosperous maritime logistics sector.  By overcoming current challenges and investing in infrastructure, policy support and integration with other modes of transport, Sri Lanka can unlock the full potential of its inland waterways. Sri Lanka's strategic geographical positioning has already made it a competitive player in the global logistics landscape.  So why is IWT still not established here? The time to act is now, to ensure that Sri Lanka does not miss out on the transformative benefits that inland water transportation can offer.

    References

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    Location: 32C4+3R, Gampaha, Sri Lanka

    Comments

    1. Anonymous10 June 2025 at 23:01

      Wow you have done a great analysis

      ReplyDelete

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