The project – on the drawing boards for nearly 40 years – will be the final reservoir constructed under the Mahaweli development plan, and has been given priority to ensure water requirements for agriculture.

Two major reservoirs will be constructed under this project. The Moragahakanda reservoir will be constructed across Ambanganga – a tributary of the Mahaveli, 2km upstream of the weir at Elahera. The Kalu Ganga reservoir will be constructed on the Kalu Ganga, a tributary of Ambanganga in Laggala, Pallegama area. The project will ensure water requirement for agricultural purposes of 87,439ha of lands in Anuradhapura, Polonnaruwa, Matale and Trincomalee districts.

In addition, the project will cater to water requirements for household and industrial purposes in these four districts. The project will generate 20MW of electricity.