The Secretary to the Ministry of Mahaweli Development, Irrigation and Environment Nihal Rupasinghe said the decision was reached since the Department of Valuations is yet to complete the valuation of properties damaged by the construction.

He also pointed out that this would pave way to compensate 75 percent of the affected families.

Following continuous protests against the project from the residents in the Uva Province, the government temporarily suspended the Uma Oya multi-purpose development project until the issues related to the environmental impact of the project is fully assessed. The government has appointed a committee to study the project.

Protestors have claimed that the massive underground tunnels being dug for the project had resulted in fresh water springs drying up in many areas in the Uva Province.

The multi-purpose project involves the construction of two reservoirs on tributaries of the Uma Oya, which flows down from central hills and join the Mahaweli River, and one tunnel on the Uma Oya to divert water to a power generator further downstream.

The water will be diverted to Kirindi Oya basin which will take water to Hambantota through the 25 km long underground tunnel across mountains in Bandarawela by creating a dam at Puhulpola in Welimada and a reservoir in Diaraba.

The project at an estimated cost of US$ 529 million was launched by the previous government in 2012 with a US$ 450 million loan from Iran.

The five-year project was to be constructed by the Hardish Engineering Company of Iran.