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They receive water through five drinking wells and 14 rainwater harvesting tanks. The village also incorporates Subterra system, a natural method for waster water treatment, and a recycling facility for solid waste materials.

President Rajapakse and President of Sarvodaya, Dr. A.T. Ariyaratne ceremonially opened the village by unveiling the plaque of the housing project, hoisting flags, and handing over the keys of the houses to the new owners.

Speaking at the ceremony, Dr. Ariyaratne said, “the village was built utilizing about $700,000 that Sarvodaya received from around the world, including American children who had collected small quantities to make into a very large contribution”

At the ceremony, President Rajpakse commended Sarvodaya for its achievement and said, “Sarvodaya has accomplished a lot of work especially considering its relatively smaller size and strength.” He thanked the movement for their untiring efforts and promised to continue support.

The village also includes schemes for social mobilization and livelihood support.

The Damniyagama model village is developed to ensure that human activities are harmlessly integrated into the natural world. The village is expected to facilitate research and development of eco-villages around the world. This village demonstrates the application of environmentally friendly materials and technologies as well as participatory planning methods for sustainable development.

The project was primarily financed by Sarvodaya. Several other organizations including the American Jewish Joint Distribution Committee (AJJDC), the United Nations Environmental Program (UNEP), USAID, Bush-Clinton Fund, and the Asia Pacific Forum for Environment and Development (APFED), contributed to the project. Australian permaculture experts Max Lindegger and Lloyd Williams of Ecological Solutions and the Global Eco-Village Network (GEN) provided early design advice.