Several studies on present and future water scarcities rank Sri Lanka as a country with either little or no water-scarcity conditions. However, none of these studies have considered the spatial and temporal variations of water availability and demand within the country. This report examines the variations of water supply and demand and the differences of water scarcities between different districts in Sri Lanka under both present conditions and projected conditions in 2025. The result of the study indicates wide temporal and spatial variations of available water resources and demand. It clearly illustrates that the statistics in the form of aggregated information at national level sometimes mask issues of local water scarcity. Moreover, when the same indicators are used at subunit level, a substantial area of the country comes under severe water-scarce conditions. Although Sri Lanka is a small country, it is a good example of such variations. Knowledge of subunit level water scarcities is very important because most food requirement of the country at present comes from water-scarce regions and projected additional requirements are also to be met by the same regions.