COLOMBO – Sri Lanka might consider looking into reducing the tariff on water due to the lower cost of energy after a sharp appreciation in the rupee, Minister of Water Supply Jeevan Thondaman said.
The National Water Supply and Drainage Board (NWS& DB) increased the water tariff sharply in August 2023, claiming that the operating cost had been increased owing to high-interest payments for bank loans and increased electricity prices.
“The biggest cost we had was the energy. That is the cost we have been working with,” Thondaman told a media briefing in Colombo, explaining that in terms of the current formula, there was a 14% increase three months ago in the water tariff and that with the appreciation of the rupee they might be looking at a revision of the water tariff very soon.
The tariff revision introduced last year saw consumers facing a 30 to 50% increase in their water bills.
The minister in January said the government will not implement upward revisions due to the higher cost of living faced by people.
The Minister of Power and Energy slashed electricity tariffs soon two months ago with a reduction in fuel prices. The Sri Lankan rupee has appreciated 9.1% against the US dollar in the first four months of the year, the central bank data showed.
The minister’s comment also comes ahead of presidential polls expected to be held between September 17 and October 16 this year, while people have complained that they have not got the benefits of the rupee appreciation.
-economynext.com
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