Hydro-power generation is prominent as a renewable, alternative, clean and green energy source of power generation in Sri Lanka, compared to solar power, wind and biomass. Among the available sources, Sri Lanka has many Small Hydro Power Projects (SHPPs) in rural areas. However, public protests in the recent past against the SHPPs rose because of their negative impacts on the environment. Many researchers view environmental influences as a result of activities of hydro-power plants, yet the findings deviate from the location and focus on the nature of the project. Therefore, this paper intends to analyze the residents' perceptions on environmental impacts related to three rural projects from Padiyapelella, Manakola and Elamulla areas in the Nuwara-Eliya District. The sample included sixty families and five responsible experts, purposely selected from the affected areas. Data was collected through a structured questionnaire, observations, and interviews. Descriptive statistics, average response value comparisons and content analyses were used to analyze the data. Results reveal that more negative effects are observed at the construction stage, and they diminish with the completion while a few tend to continue. SHPPs projects have a major impact on the soil structure and, secondly, the adverse effects on other environmental components such as biodiversity, water, and tranquility Findings underline the importance of preliminary studies in minimizing the harmful effects to enhance more benefits from establishing SHPPs.