In Sri Lanka, access to clean water is not a luxury but a daily necessity, placing immense responsibility on the National Water Supply and Drainage Board. Unlike many other state institutions, its role is fundamental to survival. Yet, a growing body of audit findings, project data, and oversight reports suggests that this critical institution has, for more than a decade, been plagued by inefficiency, questionable practices, and a troubling lack of accountability.
At the heart of the concern is the apparent misuse and mismanagement of public funds. While direct evidence of corruption remains difficult to conclusively establish, the patterns revealed through audits and parliamentary oversight point to systemic weaknesses. Among the most striking issues is the failure to collect late fees owed to the board, even as it continues to promptly pay penalties to contractors and external parties. This imbalance has raised questions about whether financial discipline is being selectively applied.
Internal governance issues further complicate the picture. For years, the board reportedly operated without a proper employee database, while mandatory staff transfer policies were not implemented. Promotions have allegedly been granted to individuals lacking required qualifications, and disciplinary procedures have often been ignored or delayed. In some cases, employees who should have faced action were neither investigated nor sanctioned, contributing to a broader erosion of institutional discipline.
One of the most controversial practices involves the widespread use of “manpower” workers—temporary laborers supplied by private agencies—in place of officially approved staff. Out of 2,688 such workers, around 1,400 are said to have been sourced from a single provider, a situation that has persisted and expanded since 2012. Critics argue that this concentration raises the possibility of favoritism or hidden financial arrangements. At the same time, many of these workers have served for over 15 years in areas such as Anuradhapura, Maharagama, Kotahena, Battaramulla, and Kesbewa, despite lacking permanent employment status.
This reliance on outsourced labor has financial implications as well. The board reportedly pays an additional 8 percent commission to manpower agencies for tasks such as reading water meters. Observers note that integrating these workers into the official workforce could reduce costs and improve service efficiency, while also providing job security to experienced personnel.
Operational inefficiencies are also linked to the failure to rotate staff. A 2023 inspection of a regional service center found that many employees had remained in the same positions for periods ranging from seven to 38 years. This stagnation has led to staffing imbalances, with critical roles left unfilled while others remain overstaffed. Such practices have undermined service delivery and contributed to delays in project execution.
Procurement and project management present another layer of concern. Several large-scale water projects have experienced significant delays, cost overruns, and irregularities in contract handling. In multiple cases, contractors were granted repeated extensions without being charged delay penalties, even when projects exceeded deadlines by several years.
The Dambulla Water Supply Project illustrates these issues. Initially scheduled for completion within 36 months after its launch in 2012, the project was delayed by more than 43 months. Despite this, no late fees were imposed on the contractor, and additional projects were later awarded to the same company. By mid-2019, only a fraction of the planned 43,500 water connections had been completed, and even by late 2025, progress remained far below expectations.
Similarly, the Matara Phase 4 project has drawn criticism for its prolonged timeline and procedural inconsistencies. Although tenders were called in 2011, the contract was not awarded until 2016, and work began more than a year later. By 2019, progress stood at just 22 percent. The project was eventually halted in 2023 with substantial work still unfinished, leaving billions of rupees in costs and commitments unresolved.
A key issue in the Matara project was the failure to secure necessary land before calling tenders. This oversight resulted in significant delays, forcing the board to pay compensation and cost escalations totaling over 2.3 billion rupees. Yet, despite these losses, no penalties were imposed on the contractor for delays, raising serious concerns about consistency and oversight in contract enforcement.
Other projects, including those in Polgahawela, Makandura, Pannala, and Bingiriya, have faced similar challenges. In many instances, completion timelines have stretched to two or three times the original estimates. Parliamentary oversight bodies have warned that if such trends continue, the viability of the institution itself could come into question.
The financial consequences extend beyond individual projects. Due to delays, funds borrowed for development have not been utilized efficiently, leading to the payment of commitment fees to lenders. By the end of 2023, these fees amounted to more than 2.25 billion rupees—costs ultimately borne by the national treasury and, by extension, the public.
Amid these challenges, concerns have also been raised about the oversight role of supervising authorities. Despite the presence of monitoring teams within the ministry, critics argue that there has been insufficient intervention to correct systemic issues.
Perhaps the most ambitious—and controversial—initiative is the “Water for All” project launched during the administration of former President Gotabaya Rajapaksa. Valued at over 1,132 billion rupees, the project aimed to dramatically expand water access across the country within a short timeframe. However, questions have been raised about its feasibility from the outset.
By 2020, after nearly five decades of operation, the board had provided water connections to just over 41 percent of households. The new project set a target of nearly doubling that figure within five years. Critics argue that such rapid expansion was unrealistic, particularly given the board’s track record of delays and capacity constraints.
Implementation has also revealed mismatches between planning and need. In some areas, pipelines have been laid without corresponding water sources or treatment facilities, leaving infrastructure unused. Reports indicate that thousands of kilometers of pipes have been installed without adequate supply systems in place. At the same time, residents in urban areas such as Beruwala, Kalutara, and Panadura continue to receive water only intermittently, sometimes just a few days per week.
Adding to the concerns is the board’s growing financial burden. Outstanding liabilities have reportedly reached 228 billion rupees, raising questions about long-term sustainability and fiscal responsibility.
The broader implication is a growing disconnect between investment and outcome. While billions have been spent on infrastructure and projects, many citizens still face unreliable water access. This disparity underscores the need for reforms that prioritize efficiency, transparency, and accountability.
