The Government has allocated Rs.5 billion for 2026 to advance the Lower Malwathu Oya Multipurpose Development Project, as authorities move to accelerate work on the long-delayed development.
President Anura Kumara Dissanayake has reviewed the project with officials and directed relevant institutions to address obstacles affecting its implementation.
The project began around a decade ago but subsequently stalled for various reasons, including funding constraints.
Work has since resumed under the present Government.
The Rs.5 billion allocation is funding provided for the project in 2026 and should not be described as the project's total cost.
The Lower Malwathu Oya reservoir is being constructed by damming the Malwathu Oya at Bogoda in Thanthirimale, linking areas of the Anuradhapura and Vavuniya districts.
The planned reservoir has a storage capacity of approximately 169,400 acre-feet and is expected to become the largest reservoir in the North Central Province when completed.
The project is intended to support drinking-water supplies in Anuradhapura, Vavuniya and Mannar, agricultural water availability, rural development, flood control, hydroelectricity generation, tourism and freshwater fisheries.
Around 60% of construction of the 3.4-kilometre main dam had been reported complete during the President's recent inspection.
The Government has indicated that it aims to complete the project by the end of 2029, while some subsequent reporting has described the broader completion window as 2029-2030.
This remains a planned completion timetable, not a guaranteed completion date.
The President has also instructed officials to address the requirements of families affected by land acquisition and resettlement.