This paper discusses the nexus between youth employment and conflict based on field research conducted in the Sri Lankan district of Hambantota. The report builds on the work of International Alert and Sri Lankan partners in promoting a peace building role for the private sector, and improving governance of the economy in support of peace. The report also seeks to draw lessons for international debate, and eventually policy and practices in other conflict affected countries, in order to strengthen measures that can address both youth employment and conflict, and better link them to wider peace building efforts. The report draws out several key themes that emerged from interviews both with youths, as well as those working on development initiatives for young people. The focus was on understanding perceptions of youth, but also perception about youth by others and of the multiple causes and dimensions of unemployment as well as youth unrest. These are then compared and contrasted with some of the national and district level policy and programmatic interventions that have taken place in Sri Lanka and in the Hambantota district.