In the developing world although Sri Lanka stands out owing to its provision of welfare services and education, the problem of child labour in the informal sector is an immense challenge to the Government. This report focuses on government measures to eliminate child employment, which is mostly of an exploitative nature, characterised by poor wages and dangerous working conditions, and occurs in workplaces completely lacking in workers’ rights and labour organization. Through an analysis of past experiences and existing legislative provisions, this publication demonstrates how collaborative efforts on the part of the Government, non-governmental organisations and international agencies could lead to innovative approaches to the problem. Further, it is argued that absolute prohibition on child employment should be the ultimate goal of such policy measures.