Soil erosion is a significant environmental issue in most mountainous areas and is further exacerbated due to ongoing climatic changes and anthropogenic activities. Soil erosion not only triggers natural disasters like landslides but also degrades the fertile topsoil layers. Therefore, modeling and evaluation of soil erosion in mountainous areas and river basins are highly important. The Uma Oya River Basin (UORB), Sri Lanka is an area with rich biodiversity and is also important for agricultural production. Moreover, this area is frequently discussed due to the ongoing developments of the Uma Oya Project. This paper presents a comprehensive evaluation of soil erosion in the UORB and results are compared for two decades from 2000 to 2020. The Revised Universal Soil Loss Equation (RUSLE) was used to determine the annual soil erosion rates. In addition, the spatial-temporal variation of land use and land cover was assessed in the UORB. Results revealed that extreme soil erosion scenarios occur when forests and other vegetation lands are converted to agricultural lands and farmlands. We found that soil loss in the area largely happened due to steep slopes, reduction of vegetation and forest covers, and growth of cultivation lands. Erosion-prone areas in the river basin are identified and conservation strategies are discussed. In addition, the impact of the ongoing climate change on the UORB is highlighted.