The United States Agency for International Development (USAID) signed on June 17, a Memorandum of Understanding (MoU) with the international relief organization AmeriCares to fund the completion of a Water Distribution Network for the Ulla community in Ampara District. The completed project will serve an estimated 2,400 inhabitants in the Arugam Bay area by distributing clean and safe drinking water directly to the people.

Immediately following the 2004 tsunami, the Government identified a number of sectors and specific projects in critical need of donor assistance and funding. One of the identified human health needs was the challenge of providing safe drinking water for several eastern region communities, including the Arugam Bay area. The wells serving this community were mostly open wells, which had been overtopped and polluted by the large waves when they hit the eastern shore.

The $1m AmeriCares grant will now be added to USAID's already committed $6 million investment in wells, transmission lines, treatment plant and a large elevated storage tank to assure new safe water sources for the Ulla community. This additional contribution will allow the National Water Supply & Drainage Board (NWSDB) to work with the local users to connect the supply directly to their homes, schools and livelihoods, also benefiting the tourism-related businesses in famous Arugam Bay.