Electricity Distribution system in Sri Lanka consists of 33 kV, 11 kV and LV (400V/230 V) networks. Providing reliable supply to the end user is a challenging task to any utility. Therefore, utility is committed to develop its network to provide reliable supply to electricity users by investing in system developments. In this research, a methodology is introduced for selecting cost-effective solutions to improve the reliability of the 33 kV and 11 kV distribution systems among different proposals. Improvement of conductor, its insulation and protection of short duration faults are focused to develop the system in this research. Part of the method developed includes a software tool (named as DisFeeRIA) to analyse the reliability indices and economic parameters for the relevant proposal. Database of the DisFeeRIA software tool includes failure rate improvement, mean time to repair and costing of each option under consideration. Medium Voltage Underground Cable (MVUGC), Medium Voltage Aerial Bundle Conductor (MVABC), Medium Voltage Covered Conductor (MVCC), Room Temperature Vulcanizing (RTV) Si-R coating on existing bare overhead line ceramic insulators are considered as options for improving conductor and its insulation. One of the latest and innovative technologies used in distribution network, Pulse Closing Technology, is used to reduce short duration faults (momentary interruptions) and enhance the lifetime of the equipment used in distribution networks. Developed tool and method were tested by a case study done for distribution network in Western Province South – 01 of Ceylon Electricity Board (CEB). Three (03) feeders were selected in different areas from Urban, Coastal and Rural for this purpose. MVCC and RTV Si-R coating for existing Medium Voltage Bare Overhead lines can be used for improving the reliability of Coastal, Urban and Rural distribution feeders in a cost-effective manner after proper analysis, based on technical and economic aspects. However, depending on the safety concerns, MVUGC or MVABC can be used irrespective of the economical aspect. Intelirrupter pulse closers can be used to replace traditional auto recloses, especially with MVUGC, MVABC and MVCC in rural feeders. It helps to reduce momentary interruption failures and enhance the equipment lifetime by reducing thermal and mechanical stress on all distribution equipment and cables. Furthermore, it improves the power quality of the system.