The 'Metro Colombo Urban Development Project' covers metropolitan area of the Colombo, Sri Jayawardenapura Kotte and Dehiwala Mount Lavinia municipal council areas and the Kolonnawa urban council area.
Six lakes are being restored or created around Sri Lanka's parliament in Kotte, which itself sits in the middle of a wetland and biodiversity park will be set up in nearby Beddegana.
Colombo's Beira Lake will be cleaned and a waterfront promenade built, the finance ministry statement said.
Drainage will be boosted in flood prone areas around Nagalagam Street, Kimbula Ela, Armour Street, Sangaraja Mawatha, Saunders Place, Maligawatta, Norris Canal, Wijerama Horton Place junction, Siridhamma Mawatha, Kirulapona and Park Road.
The finance ministry said the project will meet the demand for "quality services in the metro region" and improve the living environment of the Colombo metropolitan area.
Colombo's R.A. de Mel Mawatha and Galle Road and roads in Dehiwala, Mt. Lavinia, Kotte and