Large, well-constructed ‘agro-wells’ are making farming profitable for farmers living in dry areas of Sri Lanka. Farmers in the dry areas of the district of Matale benefited from the Regional Economic Advancement Project (REAP) from 1999 to 2007. REAP was mostly funded by a loan of US$11.7 million from IFAD to the Government of Sri Lanka. The project had a total budget of US$14.5 million, and benefited some 30,000 households. A major activity of REAP’s subcomponent on soil conservation and water management was assistance to the poorest farmers to enable them to construct agro-wells for irrigation purposes. This activity was started in 2001.