Providing safe drinking water and access to sanitation services is an essential or fundamental element of the Government's program for the economic and social development of Sri Lanka. While coverage levels and service quality have improved markedly over the past decade, the need for water services has outstripped the government's ability to provide sufficient water and sanitation (including pipe borne sewerage infrastructure) and ensure equitable access to the citizens throughout the country. As such, the GoSL has initiated a program for sector reform. Key steps that are being undertaken as part of the reform process include: establishing a regulatory commission for water supply and sewerage and contracting private operators in selected regions of the country to improve operational efficiency and provide private sector investment finance. Further, GoSL has established a separate division under the line ministry for Rural Water Supply & Sanitation sub sector.

To guide the growth of the water and sanitation sector, the Ministry of Housing and Plantation Infrastructures has developed an overarching policy framework for the sector. This policy provides guidance for government agencies including provincial councils & local authorities, lending institutions, and other community based organizations, non governmental organizations involved in water supply and sanitation services in the design and implementation of programs and investment strategies to achieve the coverage, service quality, and cost recovery objectives of the GoSL.

This statement reflects the various policies that have been previously developed for the sector by the Ministry of Housing and Plantation Infrastructure the National Water Supply & Drainage Board and other Ministries and government agencies. It will be updated periodically by the Ministry of Housing and Plantation Infrastructure to facilitate achieving the goals of GoSL for the sector.

The Government of Sri Lanka is committed to improving the standard of living, promoting economic prosperity, and preserving the environment by providing access to safe drinking water and adequate sanitation facilities to the people of Sri Lanka.

This policy statement covers the provision of drinking water from bulk water supply to the final distribution to the consumers through piped networks and other means such as tankers, tube and dug wells, and other community distribution systems. For sanitation it covers the collection of sewerage through piped systems, community-based sanitation facilities, on-site sanitation facilities, and the treatment of wastewater for discharge into the environment.

These policies are listed at the end of this document.

Reform the structure for service provision to provide incentives for efficiency, attract private sector participation , improve accountability, and support community involvement while ensuring adequate provision for low-income urban and rural consumers

Bring the water sector under theregulatory and institutional framework of public utilities by setting out clear roles and responsibilities among government agencies and service providers that creates a transparent, fair and stable regulatory environment that is based on clear principles and procedures.

Sustain the service delivery of the water and sanitation sector by gradually increasing tariffs to reflect the full cost of efficient service and reduce subsidies while ensuring the affordability of water and sanitation for low-income urban and rural consumers.

Develop an investment program based on a mix of private and public funds that prioritizes and allocates investment resources based on socioeconomic criteria and ensure the equitable distribution of investment resources across the country.

Adopt a holistic approach for source protection and water conservation to ensure a concerted effort by to protect drinking f water resources, ensure adequate supply, ,the encourage the conservation, reclamation and reuse of water, and minimize the impact of wastewater discharges.

Enhance the service of quality through the implementation of the following programs in order to improve the capacity of service providers including community groups in building & operation of water supply & sanitation facilities.

Improve the provision of water services through a sustained research and development program that focuses on measures to reduce non-revenue losses, increase efficiency, adopt appropriate technologies, and improve quality.

The major integrated schemes that will remain within the NWSDB would be the Greater Colombo, Grater Kandy, Greater Nuwara Eliya areas.

The NWSDB will continue to develop and support non Integrated urban water supply schemes which are small and capital intensive and also provide services for development of rural water supply.

Local authorities, the community and small entrepreneurs will be encouraged to take over the management of small rural water schemes with the technical support from the NWSDB.

Development of head works and bulk selling by private developers to operators is an area where private investment is invited. These investment can take the from of BOOT or reverse BOOT projects. Under the BOOT arrangement, the private sector builds, finances, owns and operates the facility and eventually transfers ownership to the government. Under reverse BOOT, the facility is financed and built by the government and the private firm operates the facility and purchases it by payment of an annual fee over time.

Improvement of the waste water systems essential to meet the environmental needs of urbanization and industrialization. Waste water systems are more capital intensive than water supply systems will continue to be provided by the government in the medium term. During this period the government will move towards charging for operation and maintenance of waste water systems from the consumers with a view to providing a better service. Private sector will be invited to manage the operation and maintenance of sewerage systems.

Given the restricted level of government funding available for the water sector, the tariff level of coverage that can be achieved and the quality of service. At the same time, an affordable tariff rate has to be established taking into consideration and willingness to pay.

A dependable source of safe water is valued highly by most households. The affordability for water is estimated on average to be a maximum of 5% of income. Higher levels of consumption can be charged at progressively higher rates within a formula set for tariff adjustments. This formula should inter - alia be based the premium charge to the commercial sector over the medium term by proving competitive tariff.

The regulator will have jurisdiction over both public and private providers of water.

The Government of Sri Lanka has acknowledged the importance of health and well being of its people for social and economic development and has set a goal of providing access to safe drinking water and development and has set a goal of providing access to safe drinking water and sanitation too all citizens by the year 2010.Water and sanitation are basic sanitation human needs for sustaining life. Fresh water is a renewable but a scarce natural resource that could be easily polluted. The demands on the natural sources of water are ever increasing due to high competition among users for domestic, agricultural, services, and commercial purpose making water a social good as well as an economic goods.

The policy for the rural water supply and sanitation sector has recognized the value of water, and the need for institutional arrangement for the efficient management of facilities with community participation and the stakeholders.

A Rural Area for this purpose is defined as any Grama Niladaree(GN) Division within a pradeshiya Sabba (PS) area. However any GN Division in the former Town Council arrears that has a population over 6000 should not be considered as a rural area.

The Government of Sri Lanka supports all activities leading to provide access to potable water to all citizens. The Guidelines described below are the minimum requirements needed to ensure health and the levels of services. This does not limit the demand for higher standards, they should contribute to the incremental capital cost.

The Government of Sri Lanka promotes all activities leading to provision of access to basic sanitation to all citizen. In the day today life of the community , domestic water and sanitation are closely and inextricably linked to each other. However ,traditionally sanitation has been given lower priority as a basic need in comparison to drinking water .Sanitation is a personal matter that requires the commitment of each individual as well as the community at large to prevent health hazards arising from shortfalls in the disposal of waste.

Basic Sanitation should ensure protection to both surface and ground water from pollution and the users from water borne diseases and other health hazards. In conformity with this requirement the basic facility for sanitation should be the Ventilated improved Pit Latrine. Access to the basic facility for sanitation should be the Ventilated improved Pit Latrine .Access to this basic facility depends on the site technologies manageable at the household and community level should be development and promoted as a cost effective means of encouraging improved sanitation

Hygiene education will initiate behavioral changes and promote better hygiene practices among user communities though effective awareness creation .It also motivates communities to involve in all aspects of water supply and sanitation leading to along tern sustainability of facilities provided.

The combined effect of sound hygiene behavior together with adequate sanitation and clean water is the only way to achieve the overall objectives of the government .Therefore the government will assist the promotion of the hygiene education as an integral paart of the RWSS Sector development .

Government ,Local Authorities ,NGOs and CBO are currently engaged in the rural water supply and sanitation sector development activities. Water and Sanitation being closely related to the community life requires the participation of the communities at all stages of development and management .This necessitates an institutional framework which encompasses the respective roles, mandates and responsibilities, authority , legal provision ,system and procedures of all the strake holders of the sector.

Success of the implementation of the sector development activities will mainly depend on the effectiveness of the institutions involved in the sector.

The respective roles of the institutions in regulating, facilitating, providing and managing the water supply and sanitation sector services should be as follows.

Under the authority and power vested from the relevant ordinances, acts and regulations the local authorities will perform the relevant function pertaining to the Rural Water Supply and Sanitation Sector. In addition they should perform the followi8ng functions as well within their respective areas of authority.

CBOs are user group formed or rural community organizations capable for the provision and sustainable management of water supply and sanitation facilities to their membership . The CBOs involved in the sector activities may be registered as a , Trust Development Society ,NGO as a Company under the Companies Act. They will be recognized as authorized institutions to take part in the development of the sector. Their authority includes raising funds, obtaining loans, receiving grants, developing services, levying tariffs and management of facilities.

The CBOs will be accountable to the beneficiary community. Functions of CBOs shall be subject to the regulations imposed and standards set by the Government, Provincial Council and the Local Authorities.

NGOs are non-profit making institutions registered with appropriate authority and engaged in providing services to the communities.

Their scope extend to a variety of functions including provision of water and sanitation facilities together with hygiene education.

As facilitator, the sector development activities initiated by NGOs should conform to overall development plans of the Government, Provincial Councils, and the Local Authorities. It is the responsibility of the NGO concerned to obtain clearance of the appropriate authorities prior to any sector development activity.

Subject to the regulations imposed and standards set by the Government, Provincial Council and the Local Authorities, the functions of NGOs will be to :

The private sector includes individuals and corporate bodies registered under the appropriate authority in Sri Lanka. They should function as providers of facilities and services subject to terms and conditions specified by the relevant regulatory institutions. They will be accountable to the community that they serve and to the regulatory institutions.

They should be encouraged to make use of the favorable environmental crated by the Government for the sector development. For this purpose the private sector should use the prevailing institutional mechanism and financial instruments. It is imperative that the private sector entrepreneurs will function in socially responsible manner.

Subject to the regulations imposed and standards set by the Government Provincial Council and the Local Authorities, the functions of private sector developers and service providers will be to:

The international donors may provide funds and technical support for sector development activities.

Any donor assistance should conform to the national policy and regulations.

The Government will provide the legal framework to support and guide the sector institutions in the performance of roles and functions of the institutions. Such legal framework will enable the respective institutions to meet their responsibilities.

The legal authority vested in the respective institutions for the provision ownership, and management of facilities should be recognized and accepted by the stakeholders.

The Government will facilitate the formulation of an appropriate legal framework and necessary provisions within which the Provincial Council and the Local Authorities may enact, Statues and bylaws.

Rural Water Supply will be regulated in order to ensure efficiently, reliability and quality of suppliers and services. For this purpose suitable regulations will be enacted by Provincial Council and Local Authorities.

The present urban population in Sri Lanka is around 5.7 million. It is expected that this will increase to 5.8 million, 9.5 million & 15 million by the years 2000, 2015 and 2030. Accordingly the corresponding urban population will reach 31.5%, 45%, & 65% in the respective years. (Source Presidential Task Force Report on House and Urban Development)

To cover the urban population and satisfy the demand of economic sectors such as Industry, commerce, shipping, tourism and also to improve the existing facilities to provide satisfactory level of service to the existing customers a National Policy for Urban water has become priority.

The policy described herein briefly summarizes the present status, future goals and objectives, selection criteria, investment strategies and implementation methods including the operation and maintenance scenarios to achieve the National requirement of Urban Water.

Further more this policy is in accordance with vision and mission of the National Water Supply and Drainage Board's plan.

The total population in Sri Lanka was 18.60 million in the year 1998. Out of this 5.6 million covers the urban area which amounts to 29%. At present 90% of this population has access to safe drinking water where 67% is provided with pipe borne water supplies. Out of the piped schemes maintained by NWSDB only 36% has the capacity to provide 24 hrs supply. Most of the other schemes have an average of 12 hrs supply.

It is expected to cover the total urban population with access to safe drinking water by year 2010. Urban population is expected to reach 8.85 million in the year 2010 against a total population of 22.13 million. Service level improvements in terms of accessibility, duration of supply and quality of water supplied are the other major objectives.

A selection criteria shall be developed in order to prioritize the ranking of various projects. These criteria shall primarily address the priority of districts then the division of urban centers based on major parameters like population density, per capita investment, subsidy ration pertaining to the area ect. Similarly a division is necessary between new schemes and augmentation of existing schemes.

Following factors shall be considered in the need assessment study.

Priorities shall be established according to development plans based on substantial and periodical water supply & sanitation sector reviews prepared annually. It should be made available to the public. Financial resource priorities for the development will be established for the health and socioeconomic needs with demand driven approach on the basis of cost recovery for domestic sector. For non-domestic demands the criteria will be 100% cost recovery for capital and O&M.

Once the needs are prioritized in the urban sector in consideration of coverage and service levels, investment requirements shall be decided for the planned horizon. Financing could be categorized in to following areas.

It is envisaged to secure major share of required capital investment through Government / Donor funding, and capital cost recoveries through tariff over a period in a phased implementation. Within [the National Tariff structure for domestic consumption a life line rate shall be retrained up to 10m³/ month as well as a higher rate for consumption over 25m³/ month. The cross subsidy from commercial/ Institutional/ Industrial consumer to domestic consumers shall be reduced annually. Tariff setting shall address the operation and maintenances costs, debt services, depreciation and capital recovery.

Cost Recovery objective for Urban Water Supply is to meet through revenue from tariffs, O&M costs, overheads and debt service or depreciation which ever is greater. Similarly Tariff setting shall address the demand management thereby reducing the stress on water resources and less contribution to waste generation.

Private sector involvement is encouraged in according with Government policies and within a regulatory frame work which will improve the management efficiently.

Involvement of Private sector in the management and investments of water utilities has been identified as a key strategy to overcome the present day constraints caused by rapid increase in demand for adequate and reliable pipe-borne water supply.

The national monopoly has to give way to open competition, and encouragement will be given to the participation of the private sector to attract needy investments.

Operation and maintenance of any scheme is of vital importance for the consumer satisfaction and long lasting service. In Urban Water Supply, following procures are important and to be developed and practiced for smooth operations of the schemes in accordance with quality policy.

This facilitate trouble free operation of civil mechanical equipment. Proper PM program can eliminate sudden break downs, and the enormous costs incurred during unexpected break downs.

Proper quality control can eliminate water borne health hazards in the area of service. Further this can strengthen the treatment process by detecting unit operations.