Laggala green town was built at a cost of Rs.4,500 million with most modern facilities for the people who were displaced due to the Moragahakanda-Kalu Ganga Multi-Purpose Development Project. This town has been designed in compliance with the new urban development concepts to suit the future needs of the people. The town is another benefit of the Moragahakanda-Kalu Ganga Multi-purpose Development Project, which is the brainchild of President Sirisena.

The Moragahakanda-Kalu Ganga project is the largest multi-purpose development project in the country. The new town encompassing an area of 75 hectares houses 26 state institutions, including a Police station, unit management office, cooperative building complex and Pradeshiya Sabha building. The President will also vest the new Laggala hospital and the Laggala school in the people toda