This report explains poverty analysis, and diagnoses poverty in Sri Lanka, describing its causes and manifestations. It also outlines measures in place to reduce poverty and gives a set of strategic options for the ADB.One of the paradoxes of Sri Lanka,s economic performance during the past 50 years lies in the fact that it has achieved a high level of human development, while failing to have a significant impact on poverty and nutritional deprivation. An integral part of the Asian Development Bank,s continuing efforts to focus on reducing poverty in Sri Lanka, this report diagnoses poverty in the region and describes its causes and manifestations, outlining measures in place to reduce poverty.