Sri Lanka’s cabinet of ministers has approved a cost-based pricing formula for the state-run National Water Supply and Drainage Board, according to Minister Bandula Gunawardana.
Minister Gunawardana announced on Tuesday that the new pricing formula will be implemented starting next year.
This pricing reform is part of the conditions tied to a $100 million budget support loan from the Asian Development Bank.
The Water Board recently increased rates after years of financial losses exacerbated by an economic collapse that also raised operational costs.
Despite achieving operational profitability, the Water Board still lacks sufficient cash flow to settle its loans.