Abstract: Effluent Coda originating from palmyrah toddy distillery units is the major source of environmental pollution in the Jaffna district of Sri Lanka. Spent wash produced from distilleries is rich in organic material and characteristically less toxic. A research was carried out to find the optimal dilution factor of the effluent before discharge through construction of wet lands which is a new, ecofriendly, economically viable and environmentally safe strategy to manage the distillery effluent. The effluent was diluted as 5, 4, 3, 2, and 1 times with ground water. Complete failures of first series of dilution, treatments were discarded and new effluent was further diluted 5, 10 and 20 times to facilitate the optimum plant growth.