If the river basin is small, decentralised management is possible. Such river basins require a high degree of centralisation for efficient management. Moreover, inter-regional collaboration is likely to fail in the face of the increasing scramble for resources. Regions are unlikely to be able to hold out against local political pressures and put national interest before local interest. While water is getting scarcer by the day, devolution, while fostering local interests over national ones, will make it difficult to economise on water use.
Devolution can foster ethno-political obstacles to water sharing.
Transforming water into an ethno-political good A. R. M. Mansoor, former Cabinet Minister and Muslim political leader has objected to a separate Regional Council for Muslims on the grounds that it would arouse suspicion and tension among Sinhalese and Muslims. It may herald economic disaster for the Muslim farmers of Ampara who are dependent on water from the highlands channelled through the Senanayaka Samudra. Already there are water shortages because of less run-off from the hill country. The Devolution Package has reserved national environment policy at the centre and devolved environmental protection to the regions. The ecological grid of Sri Lanka consists of strategically placed sensitive and fragile ecological and environmental areas located mainly in Central, Sabaragamuwa and Uva Provinces.