AI could help Sri Lanka reduce road accidents and recover billions in economic losses

Road accidents in Sri Lanka are costing the economy billions of dollars every year, but a new analysis suggests that artificial intelligence (AI) could play a major role in reducing crashes, saving lives, and recovering a significant share of these losses.

A recent report estimates that road crashes cost Sri Lanka approximately USD 2.5 billion in 2024, equal to around 3.2% of the country’s gross domestic product (GDP).

The analysis, prepared by Prof. Nalinda Somasiri, Associate Dean at York St John University, UK, highlights how generative AI-powered systems could transform road safety management through better accident prediction, faster emergency response, improved enforcement, and data-driven decision-making.

Road Accidents Create a Major Economic Burden for Sri Lanka

Sri Lanka records around 3,200 road deaths and tens of thousands of serious injuries every year, creating significant social and economic consequences.

The cost of road crashes extends beyond medical treatment and loss of life. The economic impact includes:

Loss of workforce productivityHealthcare and rehabilitation expensesVehicle repair costsTraffic congestion lossesLegal and administrative expensesWider impacts on tourism and investment

According to the report, productivity losses account for the largest portion of economic damage, estimated at around USD 850 million annually.

Healthcare and rehabilitation costs contribute approximately USD 420 million, while vehicle damage, congestion and administrative expenses add hundreds of millions more.

“Road accidents are not only a public safety issue; they are also a major economic challenge,” the report states, noting that reducing preventable crashes could significantly improve national productivity.

Proposed AI-Based Road Safety System for Sri Lanka

The report proposes the creation of a national AI-powered road safety platform that would combine information from multiple sources, including:

Traffic monitoring systemsHospital and emergency recordsWeather dataVehicle movement informationPolice enforcement systems

The proposed platform would include several key functions.

Artificial intelligence could analyse historical accident data, road conditions, weather patterns and traffic density to identify dangerous locations before crashes occur.

Authorities could use these predictions to introduce targeted safety measures, improve road design and increase monitoring in high-risk areas.

AI models could process GPS and transport data to forecast congestion patterns and support more efficient traffic signal management.

This could help reduce delays, improve traffic flow and lower accident risks caused by overcrowded roads.

3. Automated Traffic Law Enforcement

Computer vision technology could analyse CCTV footage to detect:

Speeding violationsIllegal lane changesFailure to wear helmetsSeatbelt offences

AI-supported enforcement could help improve compliance and reduce dangerous driving behaviour.

AI-assisted ambulance systems could use real-time traffic information, hospital availability and injury severity data to optimise emergency routes.

Reducing response times could improve survival rates for accident victims.

5. AI-Powered Road Safety Awareness Campaigns

Generative AI tools could create targeted road safety messages in Sri Lanka’s three main languages:

These campaigns could be personalised for different regions and road user groups.

6. AI-Based Insurance Analytics

Vehicle telematics and AI analysis could encourage safer driving through risk-based insurance incentives while helping insurers identify fraudulent claims.

AI Investment Could Deliver Significant Economic Benefits

The report presents three possible scenarios for implementing AI-based road safety systems in Sri Lanka.

Limited adoption of AI technology could recover around 0.48% of GDP by 2035, equivalent to approximately USD 370 million annually.

A nationwide AI rollout by 2028 could recover around 0.85% of GDP, or approximately USD 660 million per year, while reducing injuries and preventing deaths.

A faster implementation strategy involving stronger public-private partnerships and wider use of vehicle data could generate an estimated USD 940 million in annual economic benefits by 2035.

Estimated Investment for National AI Road Safety Programme

The proposed AI-based road safety initiative would require an estimated investment of USD 85 million to USD 120 million over five years.

Digital infrastructure developmentData integration systemsAI technology deploymentStaff trainingInstitutional implementation

The report suggests that the economic returns could exceed the initial investment several times, provided that Sri Lanka introduces the necessary regulatory and institutional reforms.

Policy Recommendations for AI-Based Road Safety in Sri Lanka

The report recommends several measures to support successful implementation:

Establish a national road safety data platform connecting police, hospitals, insurers and transport authoritiesDevelop responsible AI governance standardsExpand digital traffic enforcement systemsImprove emergency response technologyMonitor progress against global road safety targetsTechnology Alone Cannot Solve Road Safety Problems

While AI could provide powerful tools for preventing crashes and improving decision-making, experts warn that technology alone will not solve Sri Lanka’s road safety challenges.

Long-term improvements will also require:

Stronger law enforcementSafer road infrastructureBetter driver educationImproved coordination among government institutions

The report concludes that with proper investment, regulation and safeguards, artificial intelligence could become a valuable component of Sri Lanka’s national road safety strategy, helping save lives while reducing billions of dollars in economic losses.