The Kuwait Fund for Arab Economic Development  (KFAD )  and the Japanese Government have granted soft loans of US $ 557 million for the Government’s massive Kaluganga and Moragahakanda irrigation projects.

The completion of the two projects, scheduled for early 2014, will benefit thousands of dry zone farmer families. An extra 82,000 hectares of land embracing Anuradhapura, Trincomalee, Polonnaruwa and Matale will be irrigated both in the Yala and Maha seasons and supply water for drinking as well as Industrial purposes.

President Mahinda Rajapaksa has expressed his desire to see the completion of this Mahinda Chinthanaya proposal without delay. The project when completed would prevent the flooding of the Manampitiya area and prevent 727 million cubic metres of water from the Mahaweli river from going waste into the sea at Koddiyar Bay in Trincomalee annually.

The  scheme would be environment friendly and completion of the project will benefit the development of Eco-Tourism as the area includes the Wasgamuwa National Park. It would also advance the development of Inland water fisheries and  will also feed the Kaudulla tank leading to the settlement of nearly 3000 farmer families in the new model village of Nava Bisopura.

The Kaluganga Reservoir has a capacity of 265 million Cubic Metres of water and has a 32-kilometre outer circle road.The Moragahakanda Reservoir can hold 570 million Cubic metres of water and its outer circle road is 66 kilometres long.