An Indian company has been awarded a $230 million water pumping project in North Central Sri Lanka, Cabinet spokesman Keheliya Rambukwella said on Thursday.

In view of the flooding created by heavy rains, the Lankan Cabinet has decided to build canals and reservoirs and a pumping system to store and release water judiciously.

A feasibility study was done following a proposal from Kirloskar Brothers in India to undertake the engineering works and also bring finance from EXIM Bank of India. The Cabinet has decided to award the contract Kirloskar Brothersn following the study.

A MoU is to be signed after the Cabinet approves the Kirloskar’s detailed technical and financial proposal.

Kirloskar Brothers, founded in 1888 and a company operating worldwide, is the flagship of the Kirloskar Group of Companies. It is based in Pune, Maharashtra. Today Kirloskar Brothers is India's largest Pump& Valve manufacturer and one of the World's largest Pump manufacturer's by market capitalization.

Recent months have seen both rain and drought creating immense difficulties to people is the country. While Sri Lanka’s dry zone has been in the grip of a severe drought, the Western slopes of the Central Highlands received heavy rains, creating floods in the Kelani Valley and also the Kalu Ganga Valley.