Sri Lanka Water Board makes loss up to April 2019
Jul 03, 2019 10:22 AM GMT+0530 | 0 Comment(s)
DRYING UP: The NWS&DB continued its loss-making run of 2018 into the first four months of 2019, after posting profits in 2017. Source: NWS&DB Photo.
ECONOMYNEXT – Sri Lanka’s state-owned water supply agency remained in the red in the first four months of 2019 during which it got 15 percent of foreign aid to government, the second highest after transport infrastructure, the Treasury said.
The National Water Supply and Drainage Board (NWS&DB) made a loss of 203 million rupees in the four months compared with a profit of 372 million rupees a year ago.
This was despite a seven percent increase in revenue to 7.85 billion rupees in the first four months in 2019.
“The government has provided capital infusion amounting to 1,255 million rupees along with the Treasury guarantees amounting to 182,721 million rupees as at end April 2019 considering the liquidity issues faced by the entity due to non-revision of tariff since 2012,” the Treasury said.
The Water Board made a loss of 505 million rupees in 2018 compared with a profit of 1,877 million rupees in 2017, the Treasury said in its mid-year fiscal report which gave details of the finances of state-owned enterprises. .
The water supply and sanitation sector got 15 percent of disbursements made by the government’s development partners from 1st January to 30th April 2019, the second highest after the roads and bridges sector which got almost 52 percent.
The Treasury report said the government invested 19.3 billion rupees on water supply and sanitation during the first four months of 2019 to provide access to safe drinking water and quality sanitation services.
This included providing support to the National Water Supply and Drainage Board to meet the cost financing of loans from both domestic and foreign banks.
The Ministry of Finance has granted approval for NWS&DB to raise almost 84 billion rupees for locally funded and 1,155.37 million US dollars and Euro 170.03 million euro for foreign-funded projects up to end-April 2019.
NWS&DB had a safe drinking water supply coverage of 90.9 percent and piped sewerage coverage of 3.3 percent as at end-April 2019 with government support for debt servicing.
(COLOMBO, 03 July, 2019)