On 6 November 2008 the Sri Lankan president Mahinda Rajapaksa presented the national budget for 2009. The plans include a renewed focus on rural development and a series of measures to improve water supply. The president also announced an unprecedented development programme in areas formerly controlled by the Tamil Tigers.

The focus on rural development and rural infrastructure, including water supplies, will aim to counter the effects of the 'neo-liberal globalisation process' that has been pursued in Sri Lanka for over 30 years. The president said that this strategy 'paid economic dividend only to a very small segment of our society'.

The budget also included a number of specific water-related measures, including:

• a 20 rupee (US$ 0.18 - € 0.14) monthly discount for consumers using less than 15 units of water, benefiting 150 thousand consumers.
• total exemption from VAT for water supply schemes carried out by community-based organizations with community participation
• an allocation of Rs. 1,680 million (US$ 15.3 million = € 12.0 million) for drinking water.

Related news:

• Sri Lanka: VAT on water for poor consumers, Source South Asia, 02 Oct 2008;
• Changing lives: rural water schemes in Sri Lanka, Source South Asia, 03 Oct 2008

Source: Asian Tribune, 08 Nov 2008

Tags: financing, participatory management, rural wash, sanitation, south asia, water resources management, water supply