Hidden cost of traffic lights: Colombo’s silent economic burden

Approximately one million commuters lose an hour in traffic on a daily basis

Adding insult to injury, during peak hours, these high-tech traffic lights are often switched off, with traffic police manually directing vehicles. This is not only a waste of investment but also doubles operational costs, as manpower replaces technology. Such inefficiencies reflect a broader systemic failure: investments made without proper monitoring or outcome evaluation

Colombo, the vibrant heart of Sri Lanka, is fast becoming a cautionary tale of urban inefficiency. Traffic congestion has become a silent tax, draining the country’s economy to the tune of half a billion rupees every day, amounting to over 200 billion rupees annually. This cost includes wasted fuel, lost productivity, increased pollution, and the opportunity costs of delayed mobility. Yet, much of this problem stems not just from road congestion but from the inefficient traffic light system; a problem exacerbated by a lack of public awareness and institutional accountability.

The hidden costs of Colombo’s traffic

Traffic jams in Colombo aren’t just frustrating; they are economically and environmentally costly. Let’s break it down:

• Wastage of fuel: With 500,000 vehicles traversing the city daily, each wasting an average of one litre of fuel in high traffic, Colombo burns Rs. 150 million per day in fuel costs alone.
• Lost productivity: Approximately one million commuters lose an hour in traffic on a daily basis. At an average hourly wage of Rs. 350, this results in a daily loss of Rs. 350 million.
• Increased vehicle costs: Wear and tear from idling adds up, costing an estimated Rs. 50 million daily.
• Environmental impact: Elevated emissions exacerbate health and environmental issues, though these costs are harder to quantify.
• Traffic management costs: Manpower, equipment, and operational expenses account for an additional Rs. 10 million per day.

Combined, these inefficiencies cost the economy totalling up to half a billion rupees daily nearly 200 billion rupees annually.

Outdated solutions to a modern problem

Colombo’s traffic system relies on a hierarchy of solutions:

Free-flow junctions for low-traffic areas.

• Signalised intersections for medium-traffic zones, though they operate on outdated fixed intervals.
• Flyovers for high-traffic areas, requiring costly infrastructure investments.
• Despite significant investments in traffic signals and systems, most junctions still operate on fixed schedules, with no adaptability to real-time conditions. 

Millions spent, millions wasted

Over the years, Sri Lanka has invested millions in installing and upgrading traffic light systems in Colombo, incorporating high-tech solutions. Yet, these systems remain largely underutilised, operating on fixed intervals instead of adapting to real-time traffic conditions.

Adding insult to injury, during peak hours, these high-tech traffic lights are often switched off, with traffic police manually directing vehicles. This is not only a waste of investment but also doubles operational costs, as manpower replaces technology. Such inefficiencies reflect a broader systemic failure: investments made without proper monitoring or outcome evaluation.

RDA’s role and public blind spot

The Road Development Authority (RDA), responsible for traffic management, has installed these systems but operates without Key Performance Indicators (KPIs) or standards to measure effectiveness. Consequently, there is no external benchmark to evaluate whether Colombo’s traffic systems are performing at optimal levels.

Adding to this issue is the public’s lack of awareness. Most people have grown so accustomed to the traffic chaos that they see it as an unavoidable part of urban life. Many are unaware that advanced traffic management technologies exist or someone is accountable for delivering better solutions. Without public pressure, there is little incentive for the authorities to innovate or improve.

Global solutions, local possibilities

Globally, cities have embraced smart traffic management systems that adjust traffic lights in real time based on road conditions. These systems use:

• Adaptive traffic signals: Powered by AI and data analytics, these systems analyse traffic flow and adjust signal timings dynamically.
• Synchronised traffic lights: Designed to maintain green waves along major corridors, reducing stop-and-go traffic.
• Continuous system updates: Based on real-time data and regular evaluations.

Countries all over the world have demonstrated that such systems can significantly reduce congestion, improve fuel efficiency, and boost urban productivity; all with cost-effective solutions.

For Colombo, adopting similar systems is not just feasible but urgent. The cost of implementing these technologies pales in comparison to the economic burden caused by current inefficiencies.

The need for standards and accountability

Colombo’s traffic woes highlight a critical issue: the absence of standards and accountability in traffic management. Establishing benchmarks and KPI-driven frameworks can help:

• Measure the effectiveness of current systems.
• Compare performance against global best practices.
• Hold institutions like the RDA accountable for inefficiencies.

Such measures would not only improve outcomes but also encourage public confidence in the system, leading to greater compliance and discipline on the roads.

Beyond technology: A cultural shift

While technology is essential, driver behaviour and discipline are equally critical. For Colombo’s traffic management system to succeed:

• Lane discipline must be enforced.
• Awareness campaigns should educate the public about the benefits of efficient traffic systems.
• ​ Policymakers and authorities must ensure regular system upgrades and evaluations.

A call for change

Colombo’s traffic light inefficiencies are a classic case of wasted potential and public funds. The current system is failing not because solutions are unavailable but because we lack the mechanisms to implement and maintain them effectively. This issue is more than an inconvenience; it’s a symptom of deeper systemic problems that require bold action.

It’s time to recognise that Colombo deserves better. Public awareness must increase, standards must be set, and accountability must become the norm. Let us envision a city where traffic flows efficiently, investments yield results, and every citizen reclaims their lost time and productivity.

By taking action now, Colombo can transform into a model city for the region; a testament to what’s possible when innovation meets accountability. 

Half a billion rupees a day is too steep a price to pay for inaction.

(The writer, an electronics and telecommunication engineer and a former Secretary to the Ministry of Transport and Highways, has over two decades of experience in public sector governance, telecommunications and higher education, and has led transformative projects across these fields. He spearheaded major reforms and infrastructure projects aimed at modernising Sri Lanka’s transport sector, focusing on sustainable growth, connectivity, and policy advancement. He was the Founder, President, and Vice-Chancellor of SLTC, Sri Lanka’s first research university, and a former CEO of Mobitel. Some of the key positions he has held include directorships at the Sri Lanka Telecom, National Transport Commission, Road Development Authority and Lanka Sathosa Ltd.)