The present Kandy Lake was a paddy field lying between the Dalada Maligawa and the Malwaththe Pansala. The 'Mul Aacharya' - Chief Architect of King Sri Wickrema Rajasinghe - conceived the design of this lake. A dam was built in the lower reaches and water covered the paddy field. An elevated part of the paddy field remained as an Island in the newly formed lake. The lake was named 'Kiri Muhuda' and the Island 'Jala thilaka mandapaya'. It was a beautiful sight. Some of the courtiers must have been jealous, for the body of the 'Mul Aacharya' was subsequently found floating in the Lake.