Sri Lanka Railways faces legal action from JF Tours over alleged breaches of a Cabinet-approved agreement, leading to the cancellation of the iconic ‘Viceroy Special’ steam train bookings. The luxury train, which has been in operation for 40 years, is a key component of Sri Lanka’s tourism industry, promoting heritage experiences for both local and international travelers.
According to JF Tours Managing Director Pavithra Fernando, the company holds a five-year contract with Sri Lanka Railways, approved by the Cabinet on July 17, 2023. This agreement outlines obligations for both parties, with JF Tours managing the train’s interiors, operations, and marketing, while Sri Lanka Railways ensures the engines remain operational with a minimum 10-day notice for trips.
However, recent unexplained cancellations by Sri Lanka Railways have disrupted operations, including a January 11-13 booking worth $15,600. JF Tours claims these actions constitute a breach of contract, jeopardizing its business and partnerships with international travel agents.
The company also alleges that Sri Lanka Railways has failed to service three steam engines, despite repeated requests to prepare them for the upcoming tourist season. Meetings to discuss these repairs were reportedly cancelled without explanation.
Attempts to resolve the issue, including communications with the Minister of Transport and requests for booking confirmations, have gone unanswered. JF Tours has now initiated legal action, seeking compensation for damages and warning of further cancellations worth over $630,000 up until March if the agreement is not upheld.
The disruptions have strained partnerships with UK and Australian travel agents, who had planned trips a year in advance. Legal action from foreign tour operators may also follow, as they seek to recover damages for flight tickets and other pre-booked services for their clients.
Sri Lanka Railways General Manager J.I.D. Jayasundara has stated that he is unaware of the issue.
The situation highlights broader challenges within Sri Lanka’s tourism sector, as the failure to honor agreements could damage the country’s reputation among international travel operators and tourists. JF Tours emphasizes the need for accountability and immediate action to prevent further losses.