Government to Reassess Water Pricing at End of June Amid Cost Review

June 02, Colombo (LNW): The Government is set to conduct a comprehensive review of water sector expenses at the end of June before deciding whether any changes to consumer water charges are necessary, according to Minister of Housing, Construction and Water Supply Susil Ranasinghe.

Speaking after a ceremony where newly appointed Management Assistants of the National Water Supply and Drainage Board received their letters of appointment, the Minister stressed that no decision has been taken regarding a possible tariff revision and that current rates remain in place.

He noted that the upcoming assessment, scheduled for June 30, will examine operational and treatment costs incurred during the first half of the year. The review is expected to provide authorities with a clearer picture of the financial position of the water supply sector before any policy decisions are made.

The Minister’s remarks follow a Cabinet determination made earlier this year to maintain existing water tariffs for the first six months of 2026. At the time, officials indicated that revenue generated under the current pricing structure was sufficient to meet operational requirements and sustain service delivery.

Addressing public speculation over a potential increase, Ranasinghe acknowledged that the recent adjustment to electricity charges could place some additional pressure on operating costs, given the energy-intensive nature of water treatment and distribution. However, he maintained that any resulting impact on household water bills would likely be limited.

According to the Minister, the National Water Supply and Drainage Board will evaluate expenditure related to water purification, pumping operations, maintenance activities and other essential services before presenting its findings for consideration.

He also expressed confidence that the sector’s financial performance would remain stable enough to avoid passing additional costs on to consumers.

While the final decision will be made following the June review, Ranasinghe indicated that, based on current projections, a tariff increase appears unlikely. Nevertheless, he emphasised that authorities would make their determination only after carefully analysing all financial and operational data from the first six months of the year.

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