Decision on water tariff reduction, soon?
Minister of Water Supply and Estate Infrastructure Development Jeevan Thondaman, announced that the reduction of water tariffs is being studied alongside the new electricity tariff revision, with a decision expected by the end of this week.
The Minister also highlighted that the Water Supply Board, previously experiencing a monthly loss of LKR 2.8 billion, has now achieved a profit of LKR 6.2 billion.
Minister of Water Supply and Estate Infrastructure Development Jeevan Thondaman made these remarks during the ‘Collective Path to a Stable Country’ press briefing today (17) at the Presidential Media Centre (PMC).
Minister Jeevan Thondaman, elaborating further, also stated:
We commend Minister Kanchana Wijesekera for initiating steps to lower electricity tariffs. The water supply sector is closely tied to electricity tariffs, making it likely that this revision will also lead to reduced water tariffs.
Water availability is influenced by various factors. We previously committed to lowering water tariffs in tandem with reductions in electricity charges. Currently, the Ministry is not only focusing on electricity but also assessing the impact of reduced interest rates, down from 26% to 11%. Additionally, we are studying the potential reduction in water tariffs based on changes in the dollar exchange rate. It’s important to note that the cost of chemicals procured by the water supply board is influenced by the dollar exchange rate.
It is expected that by the end of this week, a decision will be made regarding the extent of the reduction in the water tariff. When I assumed office in January 2023, the Ministry faced challenges, unable to even provide 1,000 new water connections. Moreover, I inherited a Ministry burdened with an USD 800 million debt and a Water Supply Board experiencing monthly losses of approximately LKR 2.8 billion. The board’s monthly recurring expenses of LKR 4.5 billion had a significant national impact.