Dec 29, Mathale: A tense situation erupted this afternoon at Laggala town in Mathale as some protesters blocked the vehicle of Urban Development Minister Rohana Kumara Dissanayake.

According to the sources nearly 2000 people of the area staged a protest in Laggala city, demanding compensations for those who lost their lands due to the Moragahakanda project.

Sources said the protesters including Buddhist monks blocked the road by burning tires for nearly one and half hour.

The Minister assured the Laggala residents that the government hopes to settle the matter within 15 days.

The Moragahakanda reservoir was the fifth reservoir planned under the Mahaweli master plan to provide increased water supplies to about 81,500 hectares of drought-prone irrigation areas in the northern and central parts of Sri Lanka. Under the project 14 villages are to be inundated the government has promised to compensate and resettle the people in the villages.