By: Staff Writer
August 26, Colombo (LNW): A coalition of Sri Lankan trade associations is urging the government to lower water tariffs for industrial users to alleviate financial burdens on local industries. T
he group, which includes prominent organizations like the Joint Apparel Association Forum (JAAF), the Federation of Chambers of Commerce and Industry in Sri Lanka (FCCISL), the European Chamber of Commerce in Sri Lanka (ECCSL), and the Exporters Association of Sri Lanka (EASL), is advocating for a fair pricing system that reflects the actual cost of utilities.
Recently, the Sri Lankan government announced a new pricing formula aimed at reducing water tariffs. Cabinet Spokesman and Minister of Transport, Highways, and Mass Media Bandula Gunawardana revealed that a 7% reduction in water tariffs for domestic users would be implemented starting 23 August.
Additionally, a gazette was published that includes a 4.5% reduction for government hospitals and a 6.3% reduction for places of religious significance. These changes, initiated by Water Supply and Estate Infrastructure Development Minister Jeevan Thondaman, took effect on 21 August.
However, the trade associations expressed concern that these reductions did not extend to industrial tariffs. They argue that water is a crucial component in the operations of Sri Lankan industries and that high tariffs could harm competitiveness and deter investment, particularly in sectors such as manufacturing.
JAAF Secretary General Yohan Lawrence emphasized the importance of a progressive approach to water tariffs to support economic recovery and maintain global competitiveness.
The new pricing formula, developed in agreement with the International Monetary Fund (IMF), is designed to reflect the actual cost of water supply. Following recent reductions in fuel and electricity tariffs, there is growing pressure to further adjust water tariffs, particularly for industrial users.
Despite the reductions in domestic tariffs, industrial water tariffs have remained unchanged. For instance, the tariff for water supplied to Board of Investment (BOI) zones rose from Rs. 65 to Rs. 85 in 2022 and was further increased to Rs. 150 per unit in 2023.
The trade associations argue that, given the recent reductions in electricity and fuel costs, there is a strong case for revisiting and lowering industrial water tariffs as well.
The existing water charges were implemented by the National Water Supply and Drainage Board starting 1 August 2023, following the approved tariff policy and formula.
The trade associations believe that reducing water tariffs for industrial users is essential to support economic recovery and ensure that essential services remain affordable for all Sri Lankans.
