Water Tariffs to Lower With to Economic Turnaround - Jeevan

COLOMBO (News 1st); Minister of Water Supply and Estate Infrastructure Development, Jeevan Thondaman, revealed plans to potentially reduce water tariffs in light of various favorable economic changes. 

Minister Thondaman highlighted the interdependence of the water sector on multiple factors, emphasizing that a prior promise was made to lower water tariffs should electricity tariffs decrease. 

He said that his team is diligently studying the potential for tariff reductions, not only based on electricity costs but also considering the significant drop in interest rates from 26% to 11% and the reduction in the dollar rate.

"The chemicals we procure for the water board are imported and priced in dollars. With the dollar rate now lower, we are conducting a swift assessment. By the end of this week, we expect to determine the extent to which we can reduce the water tariff," Minister Thondaman stated.

In addition to tariff reductions, Minister Thondaman reported significant progress in the sector's infrastructure development. 

"We have provided approximately 113,000 new water connections to date, with an additional 30,000 connections expected in the coming weeks."

Furthermore, the Minister celebrated a financial turnaround for the water sector, which has transformed from a loss-making National Water Supply & Drainage Board with a monthly deficit of 2.8 billion rupees to a profitable one generating 6.2 billion rupees monthly. 

"With a recurrent expenditure of 4.5 billion, the surplus is being directed towards debt servicing, ensuring the sustainability of the water sector," he concluded.