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The Sri Lanka Land Reclamation and Development Cooperation (SLLRDC) of the Ministry of Housing and Plantation Infrastructure (My/H&PI) has been implementing the Greater Colombo Flood Control and Environmental Improvement Project (GCFC&EIP) with financial assistance from the Government of Japan (Official Development Assistance - ODA) since 1992. The Government of Sri Lanka, in early 2000, proposed the Government of Japan to provide funds for the implementation of Lunawa Environment Improvement and Community Development Project (LEI&CDP), as a continuation of activities commenced in GCFC&EIP. The LEI&CD Project was prepared during the period from 2000 to mid 2001 proposing an integrated partnership approach at alleviating direct and indirect problems caused by regular flooding to communities in the Lunawa Lake catchment.

The loan agreement (SL-P73) between the GOSL and JBIC was signed in December 2001 for the implementation of the Lunawa Environment Improvement and Community Development Project for a period of seven years since April 2002.

The project area covers the Catchment of the Lunawa Lake with a drainage area of 6.15 sq km which is bounded by seashore in the west, and the Galle Road in the west, as shown in the attached Map.

Lunawa catchment comes under two Municipal councils as follows;

       Lunawa North Catchment - Dehiwala - Mt Lavinia Municipal Council

       Lunawa South Catchment - Moratuwa Municipal Council

Lunawa lake basin is an environmentally degraded area due to a combination of human and natural factors developed over a long period of time. It has been estimated that an  area of seven square Km in Lunawa catchment is suffered from habitual flooding, at a frequency of four to six times per year. Inundated depth is 50 to 100 cm and duration is ½ to one day.  Lunawa lake, which has had earlier supported a significant fisheries industry, is now devoid of aquatic life and considered to be biologically dead.

The objectives of the LEI&CDP is to improve the environment and to uplift the quality of life of people in Lunawa area by alleviating flood, through improvement of storm water drainage system, including the rehabilitation of existing canals and streams, creating a hygienic and pleasant environment through improvement of storm water drainage systems and, upgrading the living condition of the (a) communities identified for resettlement (about 870HHs) and (b) Under-served communities(15) in the inundated area (3350HHs)

The total cost of the project is JY 10,287 Million. The loan component is JY 6906 Millions and the rest is provided by the GOSL from its counterpart funds.