In order for Sri Lanka to realise her enormous potential, the war must be put to an end. The primary barrier to achieving this goal is the ongoing conflict that has led to widespread suffering and deepening poverty. Development donors recognise the need to better understand the links between development, poverty and conflict and to design poverty focused programmes which address the underlying bases of social conflict. This report is based on a two week field visit to Sri Lanka in April 2000, and it represents one contribution towards understanding linkages better, and developing practical approaches to poverty alleviation and conflict mitigation in a context of ongoing violence. In addition to interviews with donors, government officials, NGOs and academics in Colombo, field trips were made to Trincomalee, Kandy and Hambantota. The study also draws upon current literature and related research in this area.