This study was recommended by a UK-World Bank mission that visited Sri Lanka in 1982, to renew the progress of the Tank Irrigation Modernization Project (TIMP), in order to critically compare the actual achievements of the project with appraisal expectations. The study raises many issues that are of a fundamental nature pertaining to irrigation rehabilitation. The author points out that although it is recognized that a system free from design and construction errors is difficult to achieve, it is equally important to recognize that such errors would lead to adverse user-management relationships and weak user-participation in system management. The author also says that despite the intensions, the development strategy adopted shows a significant lack of emphasis on the complementary institutional and organizational support. The project involves 5 major irrigation schemes in the North Central dry zone. The study findings suggest that, in general, a majority of farmers felt the irrigation network had improved, as a result of modernization. However, farmers were also quick to point out considerable problems associated with the construction and designing of the conveyance system, as well as with the rotational water distribution system.