In this study, the El Nino Southern Oscillation (ENSO) phase index is used for water management over the Kotmale reservoir in Sri Lanka. Daily rainfall data of 9 stations over the Kotmale catchment during 1960–2005 June‐September (JJAS) season is investigated over the Kotmale catchment. The ENSO phases are identified based on the 0.5°C sea surface temperature (SST) anomaly over Nino 3 region. The study has brought out few stations showing increasing and a few decreasing seasonal rainfall trends for JJAS season, while there is no change in the annual rainfall for the catchment. Monthly and seasonal rainfall of all the selected stations showed negative correlation with the sea surface temperature (SST) over the Nino‐3 region index during JJAS season with varying magnitudes. During the warm phase of ENSO, below average rainfall is prominent for JJAS season over many stations. The rainfall especially during early September showed a significant below average rainfall during the warm ENSO phase. The seasonal rainfall during neutral and cold ENSO phases does not experience similar significant changes as seen during warm ENSO phase. Inflow of the Kotmale reservoir shows decreasing trend for the period of 1960–2005 in the observation from all stations collectively.