The lands of the Central hilly region of Sri Lanka, of which over 70% are steep with gradients ranging from 40–80%, are eroded due to improper utilization. Hence, the principal objective of a project undertaken by a Private Venture was to redevelop this region. Prior to the establishment of the project the region had been under shifting cultivation of annual food and cash crops (e.g. tobacco) for many decades, with successively decreasing yields. This was attributed to the poor soils degraded by erosion and exhaustion of soil fertility resulting from this non-sustainable agricultural practice. The project started with the establishment of G. sepium in predetermined blocks or around the fence lines for the development of the degraded lands. The planting of Gliricidia proved be a success as the species was adapted to the local ecophysiological conditions. The resulting fuel wood was used for electricity generation using a dendrothermal unit, and it, proven is to be a successful technology for rural off grid electrification. As the investment in Gliricidia trees was already paid by the sales of firewood, the leaves were a welcome trade-off to redevelop soil fertility.