President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe have decided to appoint a Parliamentary Select Committee to look into the future of the Uma Oya multi-purpose development project.
A final decision on the continuation of the project will be made based on the PSC's recommendations, government sources said.
The PSC will also examine whether the correct procedure had been carried out before the implementation of the Uma Oya project.
They further added that the appointment of a PSC was discussed at the meeting held between the President and the stakeholders of the Uma Oya issue, last Friday.
A senior government spokesman said the appointment of a PSC was an acceptable solution to all parties affected by the Uma Oya crisis.