The Ministry of Environment is the national authority that formulates policies and guidelines for the conservation of the environment and natural resources in Sri Lanka. Under the ministry, there are six agencies which are responsible for policy implementation, including the CEA and the Marine Environment Protection Authority (MEPA).

The CEA is was established in 1981 as the authority with regulatory powers for activities that have adverse impacts on the environment under the National Environment (Amendment) Acts No. 56 of 1988 and No. 53 of 2000. Industrial water pollution control is regulated under provisions of the NEA by CEA. In addition, there are different governmental agencies related to water environment management. MEPA is in charge of the management of the coastal and marine environment.

National Water Supply and Drainage Board (NWS & DB) is responsible for water supply and sewerage treatment and management in the country. Other organizations which are responsible mainly for water resource management include the Department of Irrigation, Water Resources Board, and the Mahaweli Development Authority. Governmental organizations related to construction, engineering services, housing and common amenities such as the Condominium Management Authority, National Housing Development Authority, and Board of Investment of Sri Lanka are not directly related to water environmental management, but they regulate development/industrial activities which affect the condition of water quality.

Local governments also play an important -role in water environmental management. They are responsible for regulating low-impact industries and activities prescribed by orders issued under the National Environmental Act. They also regulate and control on-site sanitation systems such as pit latrines and septic tanks; public health inspectors are in charge of these tasks.