In June 2012, China Development Bank Corporation (CDB) and the government of Sri Lanka signed a $214.2 million loan agreement for the development of Moragahakanda-kalu Ganga project. It is an irrigation and power generation project, aimed to promote agriculture and plantation sector of Sri Lanka. The project aimed to generate 20 megawatts to cater the local industrial electricity demand in northern central and eastern region, ensuring the drinking water supply for industrial and domestic purpose. A dam was also constructed to meet aforementioned goals. Project completed in 2017. Mahaweli Consultancy Bureau, a government owned private body, noted irrigation and agricultural improvements along with the ecological disruption, socio-economic and environmental impacts of project in the region. It further suggested mitigation activities to address the impact on biodiversity. Another media report underlined that Villages in 11 grama niladhari divisions went underwater during the construction of the dam. Over 3,000 families were displaced providing either no or less compensation than promised. Locals aggrieved their sufferings continued despite the project was undertaken in three different regimes since its commencement.
Source
https://china.aiddata.org/projects/39029/
http://www.mwsip.lk/images/pdf/eia_uec_final_june_2015_report_and_annexures.pd
https://www.iucn.org/asia/countries/sri-lanka/past-projects/biodiversity-plan-moragahakanda-and-kalu-ganga-agriculture https://www.sundaytimes.lk/200301/news/water-water-everywhere-but-not-for-those-pushed-out-of-dams-way-394665.html