Water tariff increase

The Sri Lankan government's decision to raise water tariffs by a minimum of 30%, with the increase varying based on monthly usage, is causing concerns for various sectors. 

 

 

The tourism industry, particularly hotels, might be impacted due to higher operational costs. The Hotels Association of Sri Lanka (THASL) President expressed apprehension about how the tariff increase could affect the hotel industry's bottom line since water is a fundamental resource for their operations. 

 

 

However, the industry needs to immediately pass on the increased costs to guests through higher room rates. Hotel room rates are expected to remain stable for now. However, restaurants might see routine price adjustments due to the potential impact of the revised water tariffs on food preparation costs. 

 

 

Consumer rights activists have expressed concerns about rising prices for essential goods, particularly food parcels, as businesses adapt to the new water tariffs. 

 

 

A gazette notification regarding the tariff revision has been issued, which entails at least a 30% increase in water tariffs based on monthly usage.