Exploiting the existing social structure, the Dutch utilized the age-old practice, where individuals served the king in various capacities in exchange for the use of land. The Company cleverly incorporated this system to its advantage, obtaining free labour for essential projects such as road construction, canal excavation, bridge building, and the establishment of storage facilities. These constructions showcased the Dutch commitment to infrastructure development.
As the Dutch set up their main center in Colombo during their rule, they wanted to grow rice in the nearby marshes of Muthurajawela, but they faced a problem – the sea tides would flood the fields with salty water, just like the previous Sinhalese kings had experienced. Their goal was to drain the saltwater from the rice fields and create a transportation route for cinnamon to the Negombo seaport using barges. This network, known as the ‘Dutch Canal,’ connected ports and remote areas under Dutch control.

After the British seized control of the island in 1796, a new Colombo-Negombo canal was constructed in 1802. The idea for this canal came from George Atkinson, who was the Colonial Surveyor General. Gavin Hamilton (1494–1803), the Government Agent of Revenue and Commerce, provided support for this initiative. The canal was named after Gavin Hamilton.
During the English colonial period, the Dutch canals in Sri Lanka became instrumental as a means of transport, especially during the transportation of tea. The British recognized the existing canal system’s potential and repurposed it to facilitate the movement of goods, including tea, across different regions of the island.
The Dutch canals served as a network of waterways connecting key tea-producing regions to major ports, allowing for the seamless transportation of tea consignments. Barges and boats were employed to carry tea from the plantations to processing centres and, subsequently, to coastal ports for shipment.
The efficient water transport provided by the canal system became a crucial element in the logistical chain of the tea industry during the English colonial era. Overall, the repurposing of the Dutch canal system by the British proved beneficial for the tea industry, enhancing the transportation infrastructure, and contributing to the success of Ceylon tea on the global market.