From roads to rails: assessing the sustainability of road freight dependency in Sri Lanka

Abstract

Sri Lanka’s freight transport system is overwhelmingly dominated by road haulage, with nearly all domestic freight carried by trucks and heavy vehicles. The sector accounts for 96 percent of national transport-related carbon emissions, while rail contributes only about 1 percent of total freight share far below the global average of 24 percent. This road dependence has created persistent sustainability challenges, including severe congestion, frequent road accidents, excessive logistics costs (20–24 percent of GDP), and overreliance on imported fuel. Despite the government’s recognition of these issues through the Draft National Transport Policy and sustainability initiatives, implementation of multimodal freight systems remains limited. This study employs a secondary data analysis using multiple international and national databases, including the World Bank’s Logistics Performance Index (LPI), the Central Bank of Sri Lanka, the Asian Transport Observatory, and the International Energy Agency (IEA). Comparative benchmarking against regional peers (India, Vietnam, Bangladesh) and global leaders (Germany, the Netherlands) is undertaken to assess modal share disparities and logistics performance gaps. Findings reveal that road freight dominance undermines all three pillars of Sustainable Supply Chain Management (SSCM) environmental (high emissions), economic (inefficiency and high cost), and social (accidents and congestion). Scenario modeling demonstrates that shifting just 1 billion tonne-km from road to rail could reduce CO₂ emissions by 35.5 kilotons annually. The paper concludes with strategic recommendations to enhance multimodal infrastructure, incentivize green freight, and strengthen institutional coordination enabling Sri Lanka to transition toward a sustainable, competitive, and resilient freight transport system aligned with international sustainability frameworks.