• New tariff to cover operational cost and service debt

In a bid to increase revenue and cover losses, the National Water Supply and Drainage Board (NWSDB) is expected to increase water tariffs by as much as 130% from next month, The Sunday Morning learns.

“The water tariff increment percentages will be determined according to the consumption, so it will range from a 50% increase to 130% depending on the volume of water consumed,” NWSDB General Manager Eng. Wasantha Illangasingha told The Sunday Morning. 

The General Manager said the impact of the tariff increase on each client would be decided by how much water they consumed, but would not comment on specific slab increments. 

Illangasingha added that the increment was expected to come into force from the beginning of next month, but would be dependent on when the gazette could be issued. The gazette will also require the Minister’s approval, Illangasingha said.

It is understood that the NWSDB expects the tariff to come into effect from 1 August. 

She said an annual revenue of Rs. 70 billion was achievable through the rate hike.

“We expect an annual revenue of about Rs. 70 billion, so that will amount to roughly Rs. 6 billion per month,” Illangasingha opined.

Illangasingha also noted that the increase in revenue would assist with servicing outstanding debts of the Water Supply and Drainage Board.

The increment will cover the operational costs of the Water Board as well as part of the debt servicing.