Sri Lanka : urban water supply

This study examines developments in Sri Lanka's urban water supply sector and what these experiences imply in general for government's role in water delivery. At present urban water supply in Sri Lanka is run and managed by a state monopoly - the National Water Supply and Drainage Board (NWSDB). While in the past efforts at reform largely failed, recently a new coordinating body and new mechanisms have been set in place to streamline decision-making processes. Organizational restructuring and improved tariff management, underpinned by government insistence on financial viability, have led to significantly improved performance. The Government has used cross-subsidies to favour rural communities to iron out disparities between urban and rural areas in access to potable water. There is, however, some tension between donor pressures to bring in the private sector and remove subsidies, especially for urban areas, and the government's wish to maintain ownership and control.