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Hand-Colored photograph of Padda Boats on Hamilton Canal – (Colombo to Negombo Canal), Sri Lanka 1890

In 1802 British started a new canal to the east of the earlier cut canal by Sinhalese king and the Dutch. This canal was called Hamilton canal and meant to link the Dutch canal by a series of parallel canals designed to drain the Muturajawela. But what happened was the opposite as the high tide brought salinity not only from Negambo lagoon but also Kelani river.

During the 15th Century King Vira Parakramabahu VIII, Negombo lagoon served as the main seaport for trading in cinnamon and other commodities. It is presently called the Dutch canal and links Kelani river with the main sea port of Negambo lagoon to the east of Muturajawela.