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No water tariff hike likely this year

No water tariff hike likely this year

03 Jul 2026



Water tariffs are unlikely to be revised during the second half of the year, Housing, Construction and Water Supply Minister Susil Ranasinghe said yesterday (2), citing stable operational costs and only a limited increase in water production expenses.

Speaking on the expected six-month tariff review, Ranasinghe said the National Water Supply and Drainage Board (NWSDB) had not incurred significant additional costs for water purification during the first half of the year, reducing the need for a tariff revision.

He said there was currently no requirement to increase water charges, as the Board's operational costs had remained relatively stable.

Water tariffs are typically reviewed every six months. However, no revision was implemented during the first half of this year.

When asked whether a tariff revision would be introduced for the period from 1 July to 31 December, Ranasinghe said the overall cost impact had been minimal.

He explained that the main factor affecting costs had been the recent 18% increase in electricity tariffs, while fuel price increases had had little impact on water treatment operations.

According to the Minister, electricity accounts for around 12% of the NWSDB's total cost structure, resulting in an estimated increase of about Rs. 2.50 per unit of water.

"Therefore, the cost impact over the past six months has been minimal. As a result, it is likely that there will be no revision of water tariffs in the next six months as well," he said.

 


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