• Approval given by Cabinet of Ministers last week

Despite Cabinet approval being granted to increase water and sewerage transport tariffs, the National Water Supply and Drainage Board (NWSDB) is yet to be informed of the relevant percentages the tariff is to change by, The Daily Morning learns.

The Cabinet of Ministers last week granted approval to raise water and sewerage transport charges, and the same was announced by Cabinet Spokesman Dr. Bandula Gunawardena.

When contacted by The Daily Morning to inquire about the planned tariff hike, NWSDB’s Deputy General Manager (Commercial) Piyal Pathmanatha said that they have not yet been informed of the relevant Cabinet decision, and rates at which the tariffs will be raised.

"When we are informed of the relevant rates by the Cabinet of Ministers, we will issue the gazette notification to implement the decision."

In response to a query as to whether the NWSDB has proposed any rate at which a tariff hike is needed, he said that they had submitted a proposal in March 2023, in that regard.

"We have proposed a tariff hike after carrying out the relevant calculation, but we do not know if the Cabinet of Ministers has approved that proposal, or something different," Pathmanatha said.

Claiming that the NWSDB has been facing critical challenges, Water Supply Minister Jeevan Thondaman last week said that an increase in the water tariff was necessary. He said that the need for an increase was driven by several factors, including the surge in electricity tariffs, the burden of debt due to past capital expenditure to expand water-related infrastructure, and the exponential increase in the cost of raw materials required to treat water.

These circumstances resulted in substantial monthly losses of nearly Rs. 2.8 billion and an annual loss of Rs. 34 billion, hindering the NWSDB's ability to meet operational expenses and service debts, and to maintain the quality of the water supply services, the Minister added. He however said that Samurdhi and tenement consumers would not see any tariff increases and would therefore continue to receive the necessary subsidies.