Wednesday Dec 17, 2025
Wednesday Dec 17, 2025
Wednesday, 17 December 2025 00:22 - - {{hitsCtrl.values.hits}}
The Cabinet of Ministers on Monday approved a near-doubling of the cost estimate for the Lower Malwathu Oya Multi-Purpose Development Project to Rs. 47.18 billion and extended its completion deadline to 31 December 2030, underscoring both the scale of the country’s development ambitions in the Northern Province and the fiscal realities reshaping long-delayed infrastructure projects.
Originally launched in 2016, the project was designed to address chronic water scarcity in the Lower Malwathu Oya Valley, a constraint that has long undermined rural livelihoods and agricultural productivity.
Cabinet Spokesman and Minister Dr. Nalinda Jayatissa announcing the decision at the weekly post-Cabinet meeting media briefing yesterday said beyond irrigation, the initiative aims to open up a new development zone in the Thanthrimale area, raise cultivation intensity across more than 30,000 acres of paddy land fed by Yodha Wewa and Akithamurruppu Wewa in the Mannar District, generate hydropower and improve access to drinking water.
Cabinet approval for the project was initially granted in July 2019 at an estimated cost of Rs. 22.9 billion. Construction commenced under the Department of Irrigation, but was subsequently halted as the COVID-19 pandemic and the ensuing economic crisis disrupted public investment and contractor capacity. By 2022, work on the project had come to a standstill.
The revival has come through the Government’s ‘Re-Strategisation and Acceleration of Large-Scale Development Projects’ framework, under which construction has now resumed. “The revised estimate of Rs. 47.18 billion reflects updated assessments by the Technical Evaluation Committee, factoring in cost escalations, design refinements and the impact of prolonged delays,” he added.
The Cabinet decision also shifts implementation fully to local funding, a move that aligns with broader efforts to recalibrate capital spending amid constrained access to external financing. While the higher price tag highlights the fiscal cost of interruptions and macroeconomic shocks, policymakers view the project as a long-term investment in water security, food production and regional development, particularly in areas still lagging national averages.
“With an extended timeline to 2030, the Lower Malwathu Oya project now re-enters the national development pipeline at a moment when the Government is seeking to balance fiscal consolidation with targeted infrastructure spending that delivers measurable economic and social returns,” he said.
The proposal to this effect was submitted by Agriculture, Livestock, Land, and Irrigation Minister K.D. Lalkantha.
