A study released by the WB last month (September) showed that Sri Lanka’s water tariffs being high compared with the South Asian average, Despite this fact, the World Bank (WB) has recommended increase in water tariff in Srilanka to meet costs needed for expansion and maintenance, Although water tariffs were increased in 2009 and again in 2012, they are still too low for cost recovery beyond operation and maintenance costsand water tariffs in Srilanka are subsidized., the World Bank said.
If capital investment cost, operation and maintenance cost, replacement cost, environmental cost and opportunity cost are all included, only about one-third of the total cost of water supply is recovered from consumers according to some estimates," it said. Although water tariffs were increased in 2009 and again in 2012, they are still too low for cost recovery beyond operation and maintenance costs, the Bank said. The Bank further said, that the national target for pipe borne water connections, where such water supplies are considered as being ‘safe water’ is a coverage of 60% of the population by the year 2020.To achieve this target NWSDB estimates an annual investment of $80 million from last year (2016) on wards, but has projected a substantial gap in investment.
