Water usage in Hospitality Industry in Sri Lanka By Senior Professor Kennedy D Gunawardana, PhD coordinator in the Faculty of management Studies and Commerce, university of Sri Jayewardenepura. Water is playing a key role in human beings as well as all animals and the plants. Water is essential in industrial, agricultural and domestic purpose. Therefore water need to a country for economic, social and cultural growth. Since people throwing garbage in to the water resources, careless use of water in households activities the water had been polluted today mostly. Schornagel, Niele, Worrell, & Boggemann(2012)have stated that freshwater is already a scare resource and it became a global issue. But the demand for the water is increased most in current society because of the rapidly growing population and the high competition between the different water users. Therefore companies must adopt a proper managing and accounting system for water since it is a valuable resource for survival and growth of elements in the earth. The Water Accounting Standards Board, (2009, p. 13) Australia’s national water accounting standard setter defines water accounting as ‘[a] systematic process of identifying, recognising, quantifying reporting and assuring information about, the rights and other claims to that water and the obligations against the water’. Many companies consider about the corporate social responsibility today. So the companies are trying to get a competitive advantage from managing the water resources well. The water accounting can facilitate the information useful to the water users in a proper structure. The objective of this research is to identify the application and the adoption of water accounting to the Sri Lanka and challenges and barriers in adopting the system to the Sri Lanka. However, only few researchers had been carried out for water accounting. In Sri Lanka the application of the water accounting is very rare and it is used as water management and recycling. Therefore it is very essential to investigate about the challenges for water accounting in Sri Lanka. Since the hospitality industry such as hotels much utilised water in their operations, focused about the challenges facing by the hospitality industry when using the water accounting. Even though there is a management process in a hotel, such as used their waste water for some activities like irrigations there is no any proper management and accounting system for that process. The management of a company not bother about the monetary value they can gain from getting this water accounting in to the profit and loss statement. Every parties relating to the water management in a company such as urban councils, public at large want to have a strong relationship for a better water accounting application. Also the management of a company imagine that, applying the water accounting for their operations is not adding value more than the cost bear by them. In the European countries there is a proper accounting for water than the Sri Lanka. But in Sri Lankan context the application of the water accounting for the business operation is not considered much by management since there is not a good understand among the accountants about that.