Soil erosion is one of the main forms of land degradation. Erosion contributes to loss of agricultural land productivity and ecological and esthetic values of natural environment, and it impairs the production of safe drinking water and hydroenergy production. Thus, assessment of soil erosion and identifying the lands more prone to erosion are vital for erosion management process. Revised Universal Soil Loss Equation (Rusle) model supported by a GIS system was used to assess the spatial variability of erosion occurring at Kalu Ganga river basin in Sri Lanka. Digital Elevation Model (30 × 30 m), twenty years’ rainfall data measured at 11 rain gauge stations across the basin, land use and soil maps, and published literature were used as inputs to the model. The average annual soil loss in Kalu Ganga river basin varied from 0 to 134 t ha−1 year−1 and mean annual soil loss was estimated at 0.63 t ha−1 year−1. Based on erosion estimates, the basin landscape was divided into four different erosion severity classes: very low, low, moderate, and high. About 1.68% of the areas (4714 ha) in the river basin were identified with moderate to high erosion severity (>5 t ha−1 year−1) class which urgently need measures to control soil erosion. Lands with moderate to high soil erosion classes were mostly found in Bulathsinghala, Kuruwita, and Rathnapura divisional secretarial divisions. Use of the erosion severity information coupled with basin wide individual RUSLE parameters can help to design the appropriate land use management practices and improved management based on the observations to minimize soil erosion in the basin.