Kandalama Reservoir is situated in Kandalama village in the Dambulla Divisional Secretariat area of Matale District. It was formed by constructing a dam across the Mirisgoniya River, one of the tributaries of the Kala Oya. The reservoir has a dam approximately 21 metres high and 1,600 metres long. It extends about 4.8 kilometres in length and 2.3 kilometres in width at its maximum dimensions. Its reported storage capacity is approximately 33.3 million cubic metres, with a catchment area of around 102 square kilometres. The Department of Irrigation carried out major rehabilitation work between 1952 and 1957. The reservoir supplies irrigation water to agricultural lands in the surrounding region, extending towards Kekirawa. Water management was transferred to the Mahaweli Development Authority in 1978. The reservoir is surrounded by dry-zone vegetation, rocky hills and rural landscapes. It is also close to Kaludiya Pokuna Archaeological Forest, Sigiriya and Dambulla Cave Temple. Some historical accounts suggest that the present reservoir may be associated with an ancient tank called Duratissa Wewa, but this identification is not conclusively established.
