Sri Lanka Water Board profits fall 50-pct
ECONOMYNEXT – Profits of Sri Lanka’s National Water Supply and Drainage Board (NWS&DB) fell by 50% in the first four months of 2017 from a year ago despite an increase in revenue, owing to higher operating costs with non-revenue water or leaks remaining significant, according to a treasury report.
But the NWS&DB is expected to record a profit of Rs. 4,830 million in 2017, according to a Statements of Corporate Intent signed with the government under which it is expected to improve its operations.
Non-Revenue Water (NRW), created mostly due to issues in linkages, metering problems and unauthorized consumption has a significant impact on the operations of NWS&DB, the treasury report said.
“The current NRW is at comparatively high at around 27.8 percent and it is expected to reduce marginally to 26 percent by 2019,” it said.
“Even though the revenue for the first four months in 2017 has increased by 7 percent to Rs. 7,405 million compared to same time period in 2016, total profitability of NWS&DB has declined by 50 percent to Rs.140 million due to the increase in operating cost.”
(COLOMBO, July 18, 2017)