According to the budget proposal in November 2005, NAQDA has launched an action plan to rehabilitate the shrimp farming industry in the Puttalm District for the year 2005; the financial provision made was 20 Million. Under this programme, desilting of the ' Dutch Canal ' at crucial places was identified and dredging was commenced on 7 th September 2005 under the auspices of the Hon. Milroy S. Fernando, Minister of Fisheries, Aquatic Resources & Christian Affairs. Desilting of the ' Dutch Canal ' will enhance the water quality for the shrimp farming industry, as the ' Dutch Canal ' is the major water source for shrimp farms in the Puttalam District.

In the initial phase the entry point to the Mundal Lake and an 8km stretch of the ' Dutch Canal ' from Mundal Lake to Palavi is planned to be carried out this year. Dredging activities are being carried out by LRDC at a total cost of Rs.8.3 million.

Chairmen of organizations, NAQDA and LRDC and officials from NAQDA attended the above event.