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Adjustment of water tariffs alongside with electricity tariff revision is under review – Minister of Water Supply and Estate Infrastructure Development

Published

2 years ago

2024/07/17

Priyan

Minister of Water Supply and Estate Infrastructure Development Jeevan Thondaman, announced that the reduction of water tariffs is being studied alongside the new electricity tariff revision, with a decision expected by the end of this week.

The Minister also highlighted that the Water Supply Board, previously experiencing a monthly loss of LKR 2.8 billion, has now achieved a profit of LKR 6.2 billion.

Minister Thondaman made these remarks during the ‘Collective Path to a Stable Country’ press briefing today (17) at the Presidential Media Centre (PMC).

Elaborating further, the minister said:

We commend Minister Kanchana Wijesekera for initiating steps to lower electricity tariffs. The water supply sector is closely tied to electricity tariffs, making it likely that this revision will also lead to reduced water tariffs.

Water availability is influenced by various factors. We previously committed to lowering water tariffs in tandem with reductions in electricity charges. Currently, the Ministry is not only focusing on electricity but also assessing the impact of reduced interest rates, down from 26% to 11%. Additionally, we are studying the potential reduction in water tariffs based on changes in the dollar exchange rate. It’s important to note that the cost of chemicals procured by the water supply board is influenced by the dollar exchange rate.

It is expected that by the end of this week, a decision will be made regarding the extent of the reduction in the water tariff. When I assumed office in January 2023, the Ministry faced challenges, unable to even provide 1,000 new water connections. Moreover, I inherited a Ministry burdened with an USD 800 million debt and a Water Supply Board experiencing monthly losses of approximately LKR 2.8 billion. The board’s monthly recurring expenses of LKR 4.5 billion had a significant national impact.

Since then, we have delivered on our commitments. The number of new water connections has increased to 113,000, with plans to add approximately 30,000 more connections in the coming weeks.

Furthermore, we have successfully transformed the Water Supply Board’s monthly loss of LKR 2.8 billion into a monthly profit of LKR 6.2 billion. It is noteworthy that with a recurring expenditure of LKR 4.5 billion, we have ensured the sustainability of the water supply sector by allocating the surplus towards debt servicing.

Through the Ministry of Power and Energy, we secured a USD 100 million policy-based loan from the Asian Development Bank (ADB). Similarly, preparations are underway for a sub-programme within the water supply sector. Cabinet approval has been obtained for the final two issues of the ADB’s reform proposals: the water tariff formula and the investment framework criteria. Upon approval by the Asian Development Bank Executive Board, an additional USD 100 million is anticipated.

Moreover, we are committed to safeguarding vulnerable and economically disadvantaged communities from the impact of water tariffs. Measures have been implemented to provide subsidies to hospitals, schools, and religious institutions classified as charitable entities.

We are also pleased with the success of the “Aswasuma” program and the President’s focus on increasing wages for plantation workers and granting land rights. The Upcountry communities have gained confidence in the President’s initiatives. Despite challenges faced by Upcountry communities, we are optimistic about the direction we are heading. Today, many longstanding issues affecting Upcountry communities have been resolved.

Next month, discussions will be held with the Ministry of Industries and Estate Companies aimed at finding a lasting solution to the plantation workers’ wage issue. Furthermore, in response to our longstanding request, the President submitted a cabinet paper on land rights last Monday. In Upcountry areas where numerous families reside, there is often only one Grama Sewa Officer, leading to inadequate distribution of government welfare benefits. This is exacerbated by historical land demarcation issues affecting Upcountry residents.

These challenges have impeded the development of Upcountry communities. To address this, the President’s cabinet paper proposes formally recognizing Upcountry areas as villages. Additionally, there is widespread agreement that priority should be given to providing housing rights to Upcountry people. Securing land rights enables individuals to build homes, fostering community development.

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Latest News

ICC prosecutor Karim Khan removed over ‘political’ sex abuse claims

Published

1 hour ago

2026/07/25

Priyan

International Criminal Court prosecutor Karim Khan says that the case is politicised and a retaliation for pursuing an arrest warrant against Israeli Prime Minster Benjamin Netanyahu [File: Aljazeera]

The Assembly of States Parties of the International Criminal Court (ICC) has voted to remove prosecutor Karim Khan over sexual misconduct allegations, his legal team has confirmed, suggesting that the move was “political”.

The vote on Friday came as the ICC faces backlash from the United States and Israel after Khan issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and his then-Defence Minister Yoav Gallant in 2024.

Tayab Ali, head of Khan’s legal team, noted that a judicial panel had “unanimously” determined that findings by the United Nations Office of Internal Oversight Services “did not establish misconduct or breach of duty by Mr Khan under the relevant legal framework”.

The administration of President Donald Trump had imposed sanctions on Khan and several other ICC officials and judges over the Netanyahu warrant.

“The decision has grave implications beyond Mr Khan’s individual case,” said Ali.

“The independence of the International Criminal Court depends upon its elected officials being protected from removal through processes that are political, procedurally unfair or inconsistent with the findings of independent judicial bodies.”

The lawyer added that Khan was removed “by an executive vote while under sanctions and while the Court is under immense political pressure”.

Ali added that the decision by the Assembly of States Parties “does not follow the evidence or the findings of the only judicial determination in this matter”.

Member states approved Khan’s dismissal almost two years after the allegations first surfaced. The 56-year-old British barrister had already stepped aside in June after an oversight panel concluded he had committed “serious misconduct”.

The ICC said on Friday that Khan’s office will now be headed by deputy prosecutors Nazhat Shameen Khan and Mame Mandiaye Niang.

“Mr Khan’s removal was determined by a process in which he was never given a fair opportunity to be heard, and in defiance of the conclusions of the independent judges who examined the full evidential record,” Ali said.

Khan’s accuser, named only ⁠as Sarah, recently told CNN that Khan had shown escalating behaviour of touching and groping her, recounting a time she said he touched her intimately while she was pretending to be asleep.

Khan has denied any wrongdoing and his lawyers have called the process that led to the vote procedurally unfair and unsupported by evidence.

Khan was leading probes into multiple conflicts, but his decision in 2024 to seek arrest warrants for Netanyahu and Gallant over war crime charges in Gaza prompted an intense backlash from governments and advocacy groups.

Former European Union chief diplomat Josep Borrell wrote in an editorial that the case against Khan is “obviously part of a larger offensive against the ICC”.

Khan’s dismissal immediately triggers the election process for a new ICC prosecutor, although a vote is not expected before next ‌year.

(Aljazeera)

Latest News

Sheikh Hasina ally resigns as Bangladesh’s president

Published

18 hours ago

2026/07/24

Priyan

Mohammed Shahabuddin, who became president in 2023, is one of former leader Sheikh Hasina's only allies left in power (BBC)

Bangladesh president Mohammed Shahabuddin has resigned, as concerns grow that his former ally, ousted prime minister Sheikh Hasina, will return to the country.

Shahabuddin’s resignation comes days after Hasina told Reuters that she would return to Bangladesh, where she faces the death penalty for crushing student-led protests in 2024 which led to the toppling of her government.

Since then, Shahabuddin has been under pressure to resign from leaders of the ruling Bangladesh Nationalist Party, sources had told BBC Bangla.

Several officials from the president’s office said Shahabuddin signed his resignation letter on Friday afternoon. In the letter he cited ill health as the reason for quitting.

The resignation letter has been submitted to the speaker of parliament, Hafiz Uddin Ahmad.

The speaker is cutting short his visit to Thailand, where he had gone for medical treatment, sources told BBC Bangla.

He will be discharging the duties of the president until a new leader is elected. According to Bangladesh’s constitution, a new president must be elected by parliament within 90 days.

Following the ouster of Sheikh Hasina’s government in the July mass uprising, sweeping changes were made across the board.

Many of her allies were removed, ranging from top-ranking bureaucrats and police officials who had served under her administration to others in key positions.

Shahabuddin was one of the few allies to remain in office.

He continued to serve when an interim government led by Nobel laureate Muhammad Yunus took power, and even after the Bangladesh Nationalist Party secured a landslide victory in the general election in February.

But Shahabuddin, whose term was supposed to end in 2028, told Reuters last December that he was eager to leave his presidency.

He said he had felt “humiliated” by the interim government, citing the sudden removal of his portraits from Bangladeshi consulates and embassies.

At that time he said he would continue his presidency until elections were held and let the next government decide on his position.

Hasina vows to return

Earlier this month, Hasina said in a Reuters interview that she and her allies would return from exile in India and face the court in Bangladesh.

Last year, the International Crimes Tribunal in Bangladesh found Hasina guilty of allowing lethal force to be used against protesters.

The UN Human Rights Commission has estimated that at least 1,400 people died during the unrest which eventually saw Hasina flee the country.

The court sentenced her to death in absentia.

In the months following her departure, her party, the Awami League, has been banned from politics, and many of its leaders jailed.

“My party leaders and workers are being subjected to tremendous repression,” she told Reuters during the interview earlier this month.

“If death comes, I want it to come on my own soil, where my parents are buried and where their blood was shed.”

(BBC)

Business

Oil prices hit $100 for the first time since May

Published

23 hours ago

2026/07/24

Priyan

Oil prices hit $100 a barrel for the first time since May as the escalating conflict in the Middle East reignited fears over global energy supplies.

Brent crude – the global benchmark for oil prices – rose more than 6% on Thursday following several days of increases as the US stepped up military strikes against Iran.

Prices spiked after Houthi militia in Yemen attacked oil tankers in the Red Sea, threatening a key export route that Saudi Arabia has used to bypass the Strait of Hormuz.

Gas prices have also risen steadily over the past month, with the benchmark UK gas price currently at around 150 per therm, up from around 98p at the end of June.

Oil prices had been falling following a temporary ceasefire between the US and Iran.

They dropped back to levels last seen before the US and Israel began military action against Iran on 28 February.

However, the ceasefire has failed and this week US Secretary of State Marco Rubio said the people in charge in Iran were “not ready to make a deal”.

The ongoing conflict risks pushing up inflation for many countries, including UK and the US leading to higher prices for consumers.

Higher oil prices typically lead to petrol and diesel becoming more expensive.

While drivers are affected directly, households could also see prices of other goods, such as food, increase due to businesses passing on higher transportation costs to customers.

Inflation has fallen both in the UK – down to 2.6% in the year to June helped by slowing diesel and petrol prices – and in the US to 3.5%.

But questions remain whether the slow down will prove short lived due to the renewed conflict in the Middle East.

New data released on Thursday showed that UK petrol prices have risen by 5p a litre since the beginning of July, hitting reaching almost £1.56.

Diesel is at £1.72 a litre, on average, according to the RAC.

Average gasoline prices in the US have surpassed $4 a gallon once more, up from $3.92 a month ago, according to motorist advocacy group AAA.

“More expensive fuel and energy can ripple through the wider economy, increasing costs for businesses and ultimately feeding through into the price of food and other goods,” said Jonathan Raymond, investment manager at Quilter Cheviot.

“This creates another headache for central banks as they continue their battle against inflation.

“If energy prices remain elevated, policymakers may come under pressure to keep interest rates higher for longer or even raise them. This would come as a blow to mortgage holders and borrowers already feeling the strain.”

The Bank of England, which sets UK interest rates, has held them at 3.75% in its last four meetings.

Paul Dales, chief UK economist at Capital Economics, said he believed the Bank will “almost certainly” hold them again. But he said analysts still expected that interest rates could be cut next year if energy price rises ease.

Kevin Warsh, the newly-appointed chair of the US Federal Reserve, last week told Congress that the central bank had “no tolerance to persistently elevated inflation”.

US President Donald Trump had pushed Warsh’s predecessor, Jerome Powell, to cut interest rates.

Trump has made it clear he expects Warsh to fulfil his demand for reductions in borrowing costs for Americans.

But the Fed held US interest rates between 3.5% and 3.75% at Warsh’s first meeting last month. He also told Congress that he was committed to “restoring price stability” in the wake of the Middle East conflict impacting prices.

[BBC]