Abstract:
Transportation makes a key contribution to the economic and social development in every
country. Among other transportation means roads play a considerable role with the lack of other means
like rails, ships and airlines. Well-conditioned roads have many tangible and intangible benefits to all
road users. Well-planned maintenance programme is an essential in this regard. There are many
causes for not having effective sustainable road maintenance practices. Those are related to
management, technology and finance. Among them, inadequate financing is a critical problem. Many
countries depend on country’s general budget even though it is not adequate. Time to time individual
countries and international lending agencies have introduced off-budget financing methods. Road
Funds concept was introduced by the World Bank as an off-budget method. In this thesis main purpose
is to analyze effectiveness of Second Generation Road Fund and to propose whether it is desirable
solution for Sri Lanka road maintenance problem. The Road Funds in developed countries, middleincome
countries and developing countries were evaluated separately and final conclusion was drawn
according to evaluation results
