023 Sri Oth 04

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Dry Zone Urban Water and Sanitation Project – Additional Financing (RRP SRI 37381)

NATIONAL WATER SUPPLY AND DRAINAGE BOARD DOMESTIC TARIFF COMPARISON

1. The four water supply schemes implemented under the Project will be managed by
NWSDB. A national tariff structure which includes a subsidized rate for low income or samurdhi
beneficiaries is applicable across all water supply schemes.

2. Samurdhi” is the national programme introduced by the Government of Sri Lanka in


1994 to alleviate poverty for the poorest households. The criteria to receive these benefits range
from consideration of the number of family members, home ownership and household income
not exceeding SLR3,600 per month. Low income recipients also benefit from a subsidized water
supply connection fee of SLR5,000 (which can be paid in installments) instead of the regular
one time connection charge of SLR 17,000. The applicable water tariff for samurdhi recipients
and other domestic consumers is set out in Table 1 below.

Table 1: Applicable Rates for Low income and Other Domestic Consumers

Consumption Other Domestic Tariff Samurdhi Recipient Tariff


(m3/month) Usage Charge Monthly Service Usage Charge Monthly Service
(SLR/Unit) Charge (SLR) (SLR/Unit) Charge (SLR)
0-5 12.00 50 5.00 50
6-10 16.00 65 10.00 50
11-15 20.00 70 15.00 50
16-20 40.00 80 40.00 80
21-25 58.00 100 58.00 100
Source: National Water Supply and Drainage Board.

3. Based on Table 1, samurdhi recipients who consume up to 15 m3 per month are


provided a subsidized tariff. 1 However, water consumption over 15 m3 is subject to normal
domestic tariff rates as 500 liters a day is considered as adequate supply for the average low
income household daily safe water requirement. Table 2 illustrates the comparison between the
average monthly bill for normal households and samurdhi recipients. According to the Table 2,
the monthly water bill for average households is 2.7% of the average monthly income and for
samurdhi recipients 5.5% assuming their monthly income of Rs 3,600. Apart from this income,
the samurdhi recipients received financial assistance exceeding Rs. 500 per month.

Table 2: Water Bill Comparison for Low income and Other Domestic Consumers
Household Type Monthly Monthly Charge Average Monthly Income Water Bill as a
Consumption (Rs.) (Rs.) percentage of
(m3/month) (excluding government monthly income
financial assistance)
Other Domestic 15 310 11,534 2.7%
Low income 15 200 3,600 5.5%
Source: National Water Supply and Drainage Board.

1
The number of current samurdhi NWSDB connections. Chilaw - 2 out of 6,500 house connections, Puttalam - 99
out of 10800 house connections, Vavuniya 50 out of 1570 house connections and Mannar - 0 out of 4416 house
connections.

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