Plans were drawn up to launch work on the Mragahakanda Reservoir Project with the intention of addressing the agricultural and drinking water problem of the peasants within the Rajarata. Construction work on this Project was launched in the year 2007, under the patronage of incumbent President Maithripala Sirisena who was then serving as Minister of Agricultural Development and Agrarian Services.

The work on the Reservoir Project is slated to be completed by the year 2016. The work is handled by the elite engineers. Chinese engineers are also making a vital contribution. The Moragahakanda Project is the largest Multipurpose Scheme which is under construction in the country.

President Maithripala Sirisena who undertook a visit to the Project site observed the construction work and inspected its progress. The President also took the initiative of issuing instructions to the officials concerned on how the future activities should be carried out.

Giving his views on the Scheme, Project Director R.D. Tennekoon mentioned that they are successfully carrying out the resettlement of families that were displaced as a result of the Reservoir Project.