Abstract
The absence of service centres that are required to facilitate economic and social development is a characteristic feature of the peripheral areas of Sri Lanka. One of the objectives of the Mahaweli Development Project is the setting up of a hierarchy of service centres in the recently developed areas of the Northern Dry Zone. The settlement programme of System H of the Project area was completed in 1984. Within a decade, 8 Townships and 26 Village Centres were established to serve more than 23,000 families. A comprehensive study of the pre-project situation and the changes taking place in the Galnewa region of System H indicated that the new hierarchy of service centres as well as the linkages that promote or result from the interaction among settlements have made a significant contribution to its socio-economic development. Problems that exist today can be solved and the experience gained so far has been valuable in planning the development of the remaining areas of the Project.
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