Comparative Analysis of Water Sector Reforms
Tracking Progress in Asia and the Pacific
Phase 1- Assessing Water Sector Policies and Reforms - Country Briefs
Sri Lanka
Water resources are under increasing stress due to growing demand and competition, especially in the Dry Zone. Sri Lanka is emerging from a period of conflict and this, together with severe problems in governance, public administration and political instability have hindered progress in reforming water sector institutions. The PRSP envisages major structural changes in governance and the economy that will set the stage for progress in the water sector.
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NATIONAL POLICIES AND REFORMS
There has been comprehensive sector review and comprehensive policies have been adopted, if not implemented. A Water Law has been presented to Parliament but ongoing political changes have prevented its passage. Considerable progress has been made in designing coordinating mechanisms in the sector, but again their effective implementation has been held up by political circumstances.
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WATER RESOURCES MANAGEMENT
The situation with regard to WRM is mixed. Areas of good progress/practice include the assessment and mitigation of environmental and social effects of projects, and incorporation of water quality management into project design. Other areas which require more progress include implementation of effective water allocation mechanisms (the enabling legislation is held up), WRM based on river basins (including completion of the restructuring of the Mahaweli Authority, long delayed), more effective management of forests, catchments and wetlands, and resolution of river management problems related to sand extraction and gem mining.
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IMPROVING WATER SERVICES
Much water-related infrastructure is provided and operated by the state or local government, although there are many village-owned irrigation systems and NGOs/IOs have provided extensive support for (largely non-piped) rural water supply facilities. Users generally consider that the government is responsible for service delivery; since financial resources are inadequate, many systems are dilapidated or unusable. However, the need for beneficiary participation and contribution to costs in order to ensure system sustainability is recognised in government policy, and is built into projects funded by IOs. The need for private sector investment in services is recognised also, but not yet enabled by legislation.
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CONSERVING WATER
Regulatory systems are to be revised under the draft Water Act, but atr present regulatory mechanisms such as charges are variable and ineffective. Tariffs for irrigation water are too low to encourage efficient use and there is significant wastage as a result of heavy subsidisation. Tariffs for domestic water are more realistic, but there is cross-subsidisation of domestic by non-domestic users. Current projects, which largely are funded by IOs, provide for beneficiary participation in planning and operation, and for cost recovery to assure system sustainability. They now commonly incorporate user education about efficient water use, but this is at an early stage.
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PROMOTING REGIONAL COOPERATION
There is some engagement with other countries through mechanisms funded by IOs such as the S Asia Water Partnership, but as an island nation Sri Lanka has no need of international arrangements for WRM. Inter-province cooperation is of more significance, and is provided for in the Constitution. Proposals for RBOs will provide another mechanism for managing inter-provincial waters.
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FOSTERING PARTICIPATION; CAPACITY BUILDING; NETWORKING
Some progress is being made in promoting government-community partnership and the participation of civil society in water management, and NGOs and CBOs play a significant role in many cases. Participatory principles are taking time to become fully functional, particularly because of delays with establishing the legal base. Capacity building is undertaken at all levels through IO-funded projects; international networking similarly is largely limited to IO-funded activities.
Topics 
Water 
