Annual Report 2008 - Ministry of Finance and Planning

2. Fiscal Developments - 2008
106
Investment in sewerage has been increased significantly
during the past few years. There are about 80,000 households
with sewerage connections in urban areas. Out of that, about
70,000 connections are managed by Colombo Municipal
Council through the income generated from levying rates.
Negotiations were held with the Asian Development Bank
for rehabilitation of critical parts of the 100 year old Colombo
sewerage system. The total cost for this has been estimated
at Rs.13 billion.
Box 2.7
Water and Sanitation Services Expanded Contd.
In 2008, Rs 2,000 million was allocated for establishment of
sewerage systems that were to be managed by the Water
Board. Sewerage disposal systems are being established
in Kandy Municipal Council area, Moratuwa, Ratmalana,
Ja-Ela and Ekala areas where as urgent rehabilitation in
Greater Colombo is being implemented.
Performance 2008
The percentage of population covered by Water Board’s pipeborn
schemes has increased from 32 per cent in 2007 to 34
percent in 2008. The number of new connections provided
under major schemes has increased from 90,000 in 2007 to
108,049 in 2008.
During the past four years 345,716 new households have
been given with pipe borne water connections and a
significant increase can be seen in the Eastern, Central,
Southern and Western Provinces. However, the larger share
of total number of connections still remain in the Western
Province. A significant increase in number of connections
due to recent expansions made in regions is yet to thrive.
Over the years, Water Board has targeted generally to
cover 20,000 – 50,000 households with new connections
/ service improvements in 20 years duration under each
large scheme that was invested. However, it is observed a
mismatch between the annual expenses of loan repayment
of completed projects and the income from the sale of water
including the income from new connections. In 2008, the
total number of new connections has increased by 9 percent
from 2007. But income from sale of water has increased
only by 4 percent than 2007 whereas interest paid for loans
of completed projects has increased by 40 percent. Water
Board has earned Rs. 340 million net income in 2008 from
new connections and paid interest on loans amounting to
Rs. 1,192 million.
The general assumption is that the sales would largely
improve through service enhancements by recently
completed projects such as Kandy, Kaluganga, Galle,
Ampara, Towns North and South of Colombo etc.
Ministry of Finance and Planning Sri Lanka
Annual Report 2008