Abstract:
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
the Sri Lankan water sector. A structured questionnaire survey identified the
economic affordability of randomly selected customers in the Western Province
of Sri Lanka. The situational analysis shows that the national water supply
entity, National Water and Drainage Board, in Sri Lanka is unable to recover
the cost of supplying domestic water, owing to the non-existence of a cost
reflective domestic tariff system. Survey responses show that the existing tariff
structure has failed to generate sufficient rate of return by achieving equity. The
methodology employed and the policies derived can be used as guides to
similar types of research in other countries as well.
