Minister of Housing, Construction and Water Supply Dr. Susil Ranasinghe has assured that water tariffs will not be increased during 2026.

The Minister said a review of water tariffs is scheduled for January 2027, at which point a decision will be taken on whether to increase, reduce, or maintain current charges.

He made the remarks while speaking to the media after a discussion at the Kandy District Secretariat on drinking water issues.

Minister Ranasinghe noted that approximately Rs. 2 billion has been allocated to the National Water Supply and Drainage Board this year for projects in the Kandy District. These include laying new pipelines, repairing existing ones, and upgrading purification centers.

He added that several projects have already been launched to address drinking water problems in the district, while some have been temporarily halted and new proposals submitted. The Water Supply and Drainage Board is reviewing all of these to take urgent steps to resolve public concerns.

The Minister further stated that the El Niño weather condition has not yet affected water sources managed by the Water Supply and Drainage Board or the Department of Community Planning, but contingency measures are being prepared to address any future impact. (Newswire)

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The government has decided not to increase water tariffs during the next six months, despite prevailing economic pressures, Minister of Water Supply Susil Ranasinghe announced. 

He explained that although water tariffs are reviewed every six months under the annual procedure, no revision was made in the first half of the year, and rates will remain unchanged from July 1 to December 31.

The Minister cited the absence of major additional expenditure for water purification as a key reason. 

While electricity bills rose by 18%, he noted this impacts only about 12% of total water costs, adding just Rs. 2.50 per unit, a minimal increase, he said. 

“Costs have risen only slightly in recent months. Therefore, to avoid inconveniencing the public, the government has decided not to revise water tariffs for the next six months as well,” Ranasinghe said.

With this decision, consumers will continue to access water at current rates, free from any additional financial burden in the months ahead. (Newswire)

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The Cabinet of Ministers has unanimously approved a proposal by the Minister of Water Supply and Drainage to maintain existing water tariffs without revision during the first six months of 2026.

The decision follows an analysis by the National Water Supply and Drainage Board (NWSDB), which confirmed that current tariffs are sufficient to cover total operating expenses. 

The review was conducted in line with the tariff formula approved at the Cabinet meeting on July 15, 2024, which requires semi‑annual assessments based on changes in key cost factors.

According to the NWSDB, the evaluation of its 2025 financials showed that revenue from existing tariffs adequately meets operational costs, eliminating the need for an increase in unit water sales prices. (Newswire)

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The Minister of Water Supply, Susil Ranasinghe, has clarified that no decision has yet been taken on whether water tariffs will be increased this year.

Addressing the media, Minister Ranasinghe said the water bill is reviewed twice annually, on January 30 and June 30.

He further said that any tariff revision will only be decided at the June review. 

“We cannot say anything yet. We can only decide based on the situation at that time,” the minister added. (Newswire)

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Opposition Leader Sajith Premadasa has raised concerns over a possible hike in water tariffs, citing the impact on already-strained households.

Taking to ‘X’, MP Premadasa said that there were rumours of a hike in water tariffs following the recent proposal to increase electricity tariffs.

“Silenced in Parliament today, so I’ll ask here: power bills proposed hike at 18.3% after a promised 33% cut, now water tariff hikes are rumoured next. When will they land, and how hard will they hit already-strained households?” he questioned. (Newswire)

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The Cabinet of Ministers has granted approval for the National Water Supply and Drainage Board to reduce water tariffs based on the tariff formula.

Accordingly, water tariffs for domestic users will be reduced by 7%, government hospitals by 4.5%, and schools and religious places of worship by 6.3%.

The government states the decision has been taken due to the reduction in electricity tariffs in June 2024 and the reduction in the cost of fuel and chemicals, etc. (Newswire)

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The proposal to implement the amended water tariff policy and amended water tariff formula from the year 2025 has received a Cabinet nod. 

The new tariff policy and formula of the National Water Supply and Drainage Board was discussed at a Cabinet Meeting in April 2024.

At the meeting, it was ordered to forward the new tariff policy and formula inclusion of required amendments following discussions with all relevant parties. 

Accordingly, the Cabinet approved the proposal presented by the Minister of Water Supply to implement the amended water tariff policy and amended water tariff formula from the year 2025. (Newswire)

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Minister of Water Supply and Estate Infrastructure Development, Jeevan Thondaman has assured that there are no plans to increase water tariffs this year. 

Minister Thondaman highlighted that the implementation of any proposed water pricing formula would be executed in a manner sensitive to the well-being of the populace, ensuring minimal distress.

“We anticipate no increase in water tariffs for the current year. While we have completed the groundwork for the water tariff formula slated for introduction last year, we are currently reviewing its specifics. We aim to avoid burdening the public unnecessarily with the water tariff formula,” he explained. 

He made these remarks while addressing various facets such as housing, land, education, health, and infrastructure during a press conference held at the Presidential Media Center on Monday (Feb 26).

Commenting on the issues faced by the upcountry Tamil community, Minister Thondaman emphasized that addressing the challenges encountered by the upcountry Tamil community should extend beyond mere daily wages.

Minister Thondaman remarked on the unnecessary nature of Memorandums of Understanding (MoUs) signed by certain political parties, purportedly aimed at resolving the issues faced by the upcountry Tamil populace, stressing that genuine solutions to these issues do not necessitate MoUs. 

The full statement of Minister Jeevan Thondaman; 

“We anticipate no increase in water tariffs for the current year. While we have completed the groundwork for the water tariff formula slated for introduction last year, we are currently reviewing its specifics. Our aim is to avoid burdening the public unnecessarily with the water tariff formula.

Certain political entities have entered into Memorandums of Understanding (MoUs) regarding the issues faced by the upcountry Tamil community. However, MoUs are not required to address the genuine concerns of the upcountry Tamil populace. The upcountry Tamil community has long witnessed such symbolic gestures; what is imperative now is tangible action. We are committed to this cause.

Contrary to some political leaders’ assertions that the sole concern of Tamil plantation workers is their daily wage of Rs. 1500.00, I refuse to belittle my people in such a manner. President Ranil Wickremesinghe advocates for a unified approach, transcending political affiliations, to address the challenges faced by minorities. I share this stance wholeheartedly. Our collective focus should be on the holistic development of the community.

Despite President Ranil Wickremesinghe’s repeated calls for unity in this regard, regrettably, many individuals remain entrenched within narrow political confines.

In 2015, a plan was set forth to construct a total of 24,000 homes for the upcountry Tamil community, comprising 14,000 units funded through Indian assistance and 10,000 units allocated by the Sri Lankan Government. However, by 2022, the onset of the Covid-19 pandemic and ensuing economic challenges led to the cessation of construction on these homes. By that time, only 1560 houses had been completed by the Sri Lankan Government. The initiation of a new project for 10,000 houses became possible as the prior 4,000-house project, facilitated by the Government of India, reached completion.

Beyond housing, the imperative of securing land rights for these communities is recognized. The upcountry Tamils have long grappled with a myriad of unresolved issues, spanning housing, land tenure, education, healthcare, and infrastructure deficiencies. Both President Ranil Wickremesinghe and I align in the belief that sustainable resolutions are imperative. Accordingly, concerted efforts are underway to address these challenges comprehensively.” (NewsWire)

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The ongoing discussions surrounding the formulation of a water tariff focusses on the need for a formula that sustains the water board while maintaining fairness for the general public, Minister of Water Supply Jeevan Thondaman said.

Minister Thondaman further said with the major domestic category comprising 75% and Samurdhi at 1.58%, the government aims to prioritize these sectors over industries, albeit without pressuring them.

Addressing a media briefing on Monday (Nov 27), Minister Thondaman said discussions are still in progress, considering two parallel formulas—one focused on cost recovery and the other on cost reflection. 

“The final draft of the tariff formula is expected in December, with a commitment to avoiding unnecessary burden on the public. There is a possibility of an increased tariff rate for commercial institutions, with an emphasis on ensuring fair rates for charitable institutions, hospitals and schools.

“To further deliberate on these crucial decisions, a meeting has been requested with Ministers Dilum Amunugama and Shehan Semasinghe. The outcome of these discussions will be communicated, leading to a vote on the proposed tariff,” he said.

Acknowledging that the economic crisis was affecting both foreign-funded and domestic-funded projects, the minister assured the public that new projects would kick-start in January, with a focus on completing existing projects. 

Stating that the government plans to engage in public-private partnerships to enhance water quality and reduce costs, he clarified that while projects would involve private participation, there is no intention to sell or privatize water.

Minister Thondaman pointed out operational losses, citing increased electricity prices and existing debt as contributing factors, highlighting a silver lining—the reduction in water usage due to conservation efforts following a tariff hike.

The minister also stressed the importance of a sustainable tariff formula that considers debt servicing and CAPEX (Capital Expenditure) but does not overburden the public.

Minister Thondaman discussed the government’s commitment to efficient water conservation, especially in areas with inadequate access to clean water, revealing plans for a desalination plant in Jaffna and efforts to prioritize water supply from villages and estates. 

The Minister also emphasized the streamlining of the water resources management policy to implement a comprehensive water management plan.

He refuted accusations of politicization within the Water Board and clarified the appointment process for key positions, assuring that revenue for the Water Board has increased, while further discussing plans to explore renewable energy sources to reduce energy costs.

As the government works towards a stable tariff formula and sustainable water management, the Minister urged the public to understand the value of water and the necessity for a balanced approach to tariff reform.

Minister Thondaman reiterated the commitment to providing clean and accessible water to all citizens while ensuring financial viability in the water sector. “The proposed reforms aim to strike a balance between the needs of the public and the economic realities faced by the water sector,” he added. (NewsWire)

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