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The Kaluganga head works Reservoir project (K Dam), along with the M dam, is considered a major water conservancy project currently underway in Sri Lanka. Construction of the reservoir began on April 2, 2014.

Upon completion, the dam will divert water to the M dam to ensure the latter's power generating capacity, improve the irrigation capacity in the center of Sri Lanka, and provide water for industrial development in the eastern region, significantly improving the country's future economic and social development. The project is funded by the Asian Development Bank.