The use of Social Accounting Matrices (SAMs) has a long history similar to the input-output accounting approach. A detailed SAM focusing on the structure of an economy and the link between production, income distribution and institutions can be used directly for policy analysis as well as a database for an economy-wide economic model. In the last few decades, there has been an urgent need to compile a SAM for Sri Lanka to develop effective policies and to undertake effective economic policy analysis using an economy-wide modelling framework. To fulfil the above need, the paper introduces a systematic framework to construct a SAM for the Sri Lankan economy, following the methods developed in compiling recent SAMs for some other developing countries. This paper develops a framework and the procedures for compiling a SAM for Sri Lanka.