News
Water tariff revision in line with project funded by ADB
Ministry Secy. contradicts PM’s Office over denial of Cabinet approval
By Shamindra Ferdinando
The recent water tariff increase has been in line with an agreement between the Wickremesinghe-Rajapaksa government and the Asian Development Bank (ADB).
According to the Water Supply and Estate Infrastructure Development Ministry, the USD 200 mn loan has been announced, following a meeting at the Presidential Secretariat, attended by President’s Chief of Staff Sagala Ratnayake, on 05 July. The ADB was meant to carry out a water reforms programme, the Ministry said.
Subsequently, Water Supply and State Infrastructure Development Minister Jeevan Thondaman (SLPP Nuwara Eliya District), who had jointly chaired the meeting at the Presidential Secretariat, with former Minister Sagala Ratnayaka, issued an Extraordinary Gazette notification pertaining to the new rates, effective from 03 August.
General Secretary of the CWC Thondaman received the relevant Cabinet portfolio in January this year from President Ranil Wickremesinghe.
The Ministry declared that the reforms undertaken were the most ambitious since the establishment of the National Water Supply and Drainage Board (NWSDB), nearly 50 years ago. These comprehensive reforms were aimed at transforming the water sector and ensure sustainable water management for future generations, it said.
The seven-point reforms agenda comprised a) a new water resources policy to effectively manage the country’s water resources; b) the establishment of a corporate strategy for the Water Board; c) a climate resilience roadmap; d) a new tariff policy; e) modern water safety standards; f) the creation of an environmental and social unit within the Water Board; and g) the introduction of public-private partnerships in the water supply sector.
The Ministry has assured regular updates to the public to ensure transparency and accountability throughout the implementation process. However, a statement issued by the Ministry, following the 05 July meeting, hasn’t referred to financial difficulties experienced by the NWSDB.
Minister Thondaman, on 18 July, told Parliament that the government had no option but to increase water rates due to the increase of electricity tariffs by 66 percent. The Minister said that the increase of electricity rates has resulted in water management cost rising to Rs 435 mn. In addition to that, the NWSDB had to settle a Rs 2.4 bn loan, the Minister said, reminding that he informed Parliament last February of the urgent need to increase water rates.
The Minister said so responding to SJB lawmaker Ishak Rahuman. Thondaman revealed that he made available the new water tariffs formula to the Office of the Opposition Leader.
On the same day, Minister Thondaman strongly justified the water rates increase at a media briefing conducted at the Presidential Media Division. The youngest member of the Cabinet explained how an additional monthly expenditure of Rs 500 mn, in addition to substantial monthly losses of nearly Rs. 2.8 billion, and a projected annual loss of Rs. 34 billion, hindered the NWSDB’s ability to meet operational expenses, service debts, and maintain the quality of water supply services.
The increase was driven by several factors, including the surge in electricity tariffs, which contribute significantly to the cost of water production. Additionally, the burden of debt (due to past capital expenditure to expand water infrastructure), compounded by currency depreciation and interest rate hikes, together with the exponential increase in the cost of raw materials required to treat water, added to the financial strain on the NWSDB, the Minister added.
Close on the heels of Minister Thondaman declaring his intention to go ahead with a new tariffs formula, Prime Minister Dinesh Gunawardena’s Office announced the Premier thwarted the move. According to the Premier’s Office, Gunawardena told the Cabinet of Ministers, on 17 July, he couldn’t accept increased water tariffs in a way the poor couldn’t afford.
Revealing that Premier Gunawardena, on three occasions, submitted his recommendations, in respect of Cabinet papers, in this regard, his Office said, on 21 July, that the Cabinet paper, on the new tariff structure, was put off for the third time, due to the MEP leader’s intervention.
Meanwhile, R.M.W.S. Saramadiwakara, Secretary to Water Supply and Estate Infrastructure Development Ministry, in a statement issued on 03 August, contradicted the Premier’s Office, pertaining to its claim that a decision on the new pricing formula was not taken on 17 July.
Samaradiwakera said that the new formula received the approval of the Cabinet of Ministers on 17 July. Having explained the circumstances leading to the latest price revision, the Ministry Secretary said that in terms of the agreement with the ADB, a new pricing formula would be introduced.
Business
Trade, Investment and Tourism Cooperation Forum strengthens economic ties between Sri Lanka and Vietnam
Marking a significant milestone in strengthening bilateral relations between Sri Lanka and Vietnam, the Sri Lanka– Vietnam Trade, Investment and Tourism Cooperation Forum was successfully held on Friday (08) at the Hilton Colombo.
The Forum, jointly organised by the Vietnam Chamber of Commerce and Industry and the Sri Lanka Export Development Board, was held in parallel with the State Visit of President Tô Lâm of the Socialist Republic of Vietnam and General Secretary of the Central Committee of the Communist Party of Vietnam. The event was attended by President Tô Lâm and Prime Minister Dr. Harini Amarasuriya.
The Forum underscored the importance of the longstanding bilateral relationship between the two countries and reflected the shared commitment to expanding economic cooperation.
The primary objective of the Forum was to further strengthen bilateral economic ties by focusing on key priorities including the expansion of trade, promotion of investment and enhancement of tourism cooperation. The event also provided an opportunity to explore new avenues of collaboration, strengthen business-to-business engagement and facilitate greater market access by bringing together senior government officials, entrepreneurs and industry leaders from both countries on a common platform.
During the Forum, direct air connectivity between Colombo and Ho Chi Minh City was officially launched. The new services, operated by Vietnam Airlines and VietJet Air, are expected to further strengthen relations between the two nations and their people.
Six Memoranda of Understanding covering key areas of cooperation were also signed during the Forum. In addition, a notable development was the establishment of the Sri Lanka–Vietnam Business Council under the Ceylon Chamber of Commerce.
Alongside the Forum, the Sri Lanka Export Development Board organised a business networking session, providing Sri Lankan and Vietnamese entrepreneurs with the opportunity to engage directly with one another. The event received strong participation from the private sectors of both countries, with businesses expressing keen interest in expanding trade and establishing resilient supply chains.
Representing Sri Lanka at the event were Minister of Industry and Entrepreneurship Development, Sunil Handunnetti, Minister of Environment , Dr. Dhammika Patabendi, Deputy Minister of Industry and Entrepreneurship Development ,Chathuranga Abeysinghe, Deputy Minister of Ports and Civil Aviation, Janitha Ruwan Kodithuwakku, Deputy Minister of Tourism Ruwan Ranasinghe, Secretary to the Ministry of Industry and Entrepreneurship Development, Thilaka Jayasundara, Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development, K.A.Vimalenthirarajah, Chairman of the Export Development Board Mangala Wijesinghe along with several other dignitaries and officials.
Representing Vietnam were Politburo Member, Secretary of the Party Central Committee and Chairman of the Central Organisation Commission , Nguyen Duy Ngoc, Politburo Member, Secretary of the Party Central Committee and Chairman of the Central Commission for Policies and Strategies , Nguyen Thanh Nghi, Politburo Member, Deputy Prime Minister and Minister of National Defence, Phan Van Giang, Politburo Member and Minister of Public Security, Luong Tam Quang and Politburo Member and Minister of Foreign Affairs, Le Hoai Trung, among others.
(PMD)
News
Accelerate projects related to resolving the public’s drinking water issues – President Instructs Officials
President Anura Kumara Dissanayake has instructed officials to promptly identify and commence the projects required to resolve the drinking water issues that have become a major concern for the public.
The President also instructed officials to formulate plans with close attention to the current needs of the people, pointing out that the inability to ensure an adequate supply of drinking water has given rise to numerous problems affecting the public.
President Anura Kumara Dissanayake made these remarks during a discussion held on Friday (08) afternoon at the Presidential Secretariat with relevant officials to review the current status of national drinking water, community water supply and wastewater management projects, the progress and requirements of budget allocations, as well as future plans.
The President further instructed officials to submit a report indicating the projects that could be identified and commenced immediately, the required allocations and the expected completion dates. He stressed that financial constraints should not be treated as an obstacle and directed officials to prepare project plans and submit the necessary funding requests accordingly.
He also instructed that, rather than depending on foreign loans, greater attention should be given to completing projects as far as possible using domestic funds. In addition, he directed that staff required for project planning be recruited on contract basis.
The President also emphasised the importance of utilising capital expenditure allocations within the same year for the relevant projects. He pointed out that failure to do so would result in adverse consequences such as additional project costs, the loss of benefits from the funds already spent and the need to allocate capital provisions again in the following year for the same projects.
During the discussion, the President separately reviewed the projects being implemented and planned to resolve drinking water issues faced by people in the districts of Colombo, Gampaha, Kalutara, Galle, Matara, Monaragala, Kandy, Gampola, Anuradhapura, Vavuniya, Jaffna, Ampara, Batticaloa and Polonnaruwa, along with the progress achieved and the issues that had arisen in implementing them.
Officials also informed the President that deteriorating main water pipelines had resulted in insufficient water capacity being supplied to residents in the Colombo District. They further presented plans to address these issues, while the President highlighted the need for close coordination and systematic planning between the Road Development Authority and the National Water Supply and Drainage Board in carrying out these activities.
The President also instructed officials to take steps to commence the Weli Oya Reservoir Project next year in order to support flood control and meet drinking water requirements in the Colombo District.
Attention was also drawn to the North Central Main Canal and North Western Canal projects. Reviewing the progress of projects being implemented to address the severe drinking water shortage faced by people in the areas of Welikanda, Medirigiriya and Lankapura, the President instructed officials to expedite the completion of projects that would not incur significant costs by using domestic funds.
The President further pointed out the importance of implementing all projects in a highly systematic and organised manner and ensuring that their benefits are delivered to the public. Although certain projects had been suspended midway due to priority being given to essential projects, he stressed that all projects were aimed at addressing the needs of the people and should therefore be carried out in a planned and methodical manner.
Minister of Housing, Construction and Water Supply Dr Susil Ranasinghe, Deputy Minister of Transport and Highways Prasanna Gunasena, Deputy Minister of Housing, Construction and Water Supply T.B. Sarath, Deputy Minister of Cooperative Development, Upali Samarasinghe, Members of Parliament including Samantha Ranasinghe, Nishantha Samaraweera, Sunil Biyanwila, Manjula Suraweera Arachchi, Shantha Padmakumara Subasinghe, Wasantha Piyathissa, Roshan Akmeemana, Ilan Kumaran, M. Jegadeeswaran, and S. Thilakanadan and Kandasamy Prabhu, Secretary to the President Dr Nandika Sanath Kumanayake, Secretary to the Ministry of Housing, Construction and Water Supply L.B. Kumudulal, Director General of the Department of National Budget Jude Nilukshan, Chairman of the National Water Supply and Drainage Board Engineer A.M.P.C.P. Bandara, Chairman of the Water Resources Board R.M.S. Bandara, Director General of the Mahaweli Authority of Sri Lanka H.M.J.K. Herath and several other state officials were also present at the occasion.
(PMD)
News
President of Vietnam and delegation departs Sri Lanka
Tô Lâm, President of the Socialist Republic of Vietnam and General Secretary of the Central Committee of the Communist Party of Vietnam and his delegation departed Sri Lanka on Friday (08) night from the Bandaranaike International Airport, Katunayake, successfully concluding the State visit undertaken at the invitation of President Anura Kumara Dissanayake.
The visit by the Vietnamese President and the accompanying delegation further strengthened the longstanding friendship and cooperation between Vietnam and Sri Lanka, while paving the way for numerous mutual benefits for the peoples of both countries.
This marked the first visit to Sri Lanka by a Vietnamese President in 15 years. The visit also comes at a significant moment as Sri Lanka continues its forward journey towards economic stability under the present Government.
Minister of Industry and Entrepreneurship Development, Sunil Handunnetti, was present at the airport to bid farewell to the Vietnamese President and the delegation.
President’s Media Division (PMD)
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