The loss of man hours and the added cost of transport by wastage of fuel and time in the public transport system run mainly by private bus operators, poor roads and traffic congestion had reflected adversely on declined the economic growth and increased the national fuel bill the Central Bank has pointed out.

Inefficient transport facilities, poor road network and traffic congestion in almost all major towns remain critical problems which adversely impact on economic growth through reduced productivity, the latest annual report of the Central Bank for 2007 noted.

Though there was a higher economic growth of above 6 percent during the past three consecutive years the road network has not been expanded sufficiently to keep pace with higher economic growth and increasing vehicle stock. The existing road network is not properly maintained, leading to poor quality of roads and traffic congestion, the report noted.

"The public bus passenger transport services have not improved notwithstanding the private sector involvement in this sector. The railway still suffers losses due to low fares, which have not been revised for a considerable period despite increases in oil prices and operational costs," the report also said.

The cost of transportation of goods is also high due to poor roads and traffic congestion leading to high cost of consumer goods. In addition the traffic congestion results in wastage of fuel, which costs the country dearly, the report stated.

The report suggested the government should accelerate the implementation of highways and expressway projects, while implementing necessary measures to improve the public transport system. An improvement in road networks and transportation would also contribute to the poverty alleviation efforts of the government by providing increased market access to goods produced in the provinces.