In 1950s and 1960s the Ceylonese government, with the assistance of the United Nations Development Programme and Food and Agriculture Organization, developed the Mahaweli Master Plan to use the waters of the Mahaweli River basin to irrigate Dry Zone land in northern and eastern Ceylon, and generate electricity. The 30-year plan was to cost Rs. 6,700 million and was divided into three phases. Phase 1 (Polgolla Diversion) was constructed in the 1970s. Following the 1977 parliamentary election the new government introduced the Accelerated Mahaweli Project which shortened the period from 30 years to 5/6 years but increased the cost from Rs. 6,700 million to Rs. 15,000 million. Phase 2 (Victoria-Minipe Diversion) was completed in the 1980s but phase 3 (Moragahakanda Project) was abandoned due to water scarcity and the outbreak of the Sri Lankan Civil War. The Moragahakanda Project had originally intended to connect the Mahaweli basin to the Kanakarayan Aru via a new canal - the North Central Province Canal.
