Proceedings of 3rd Asia-Pacific Business Research Conference

Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
Identification of the Critical Factors for Design and
Implementation of Cost Reflective Tariff System for
Domestic Water Supply in Sri Lanka
VGU Ranjith and SWSB Dasanayaka, PhD
The main purpose of this study is to identify critical factors affecting
the design and implementation of a cost reflective tariff system for
domestic water supply in Sri Lanka. This study was carried out
through a situational analysis, survey and in-depth interviews with
various stakeholders in Sri Lankan water sector. A structured
questionnaire survey identified the economic affordability of
consumers randomly selected in the Western Province of Sri Lanka.
The situational analysis shows that the water supply entity, National
Water and Drainage Board, in Sri Lanka is unable to recover the
cost of supplying domestic water, due to the non-existence of a cost
reflective domestic tariff structure. Survey responses show that the
existing tariff structure has failed to generate sufficient rate of return
by achieving equity. Facilitating access to safe drinking water for
people has great impact on socio-economic development in Sri
Lanka. This study is focused on the water tariff and subsidies, both
from a normative and a positive side. The scope of the study is
limited to tariff, subsidies and related policy issues of domestic
drinking water in Western Province comprising of districts of
Colombo, Gampaha and Kalutara districts.
Keywords: Domestic Water Consumption, Consumer, Water Tariff, Economic
Affordability, Western Province, Sri Lanka.
VGU Ranjith, MBA, Chief Engineer, National Water and Drainage Board, Kelani Water Treatment
Plant, Pattivila, Sri Lanka, Tel/Fax +94117631585, E mail: [email protected]
SWSB Dasanayaka, PhD, Professor of Management of Technology, Dept. of Management of
Technology, Faculty of Engineering, University of Moratuwa, Moratuwa, Sri Lanka, Tel:
+94112606945, Fax: +94112650622, E mail: [email protected]