There exists a clear need to improve state-citizen and state-donor consultation to ensure an improved understanding of local needs, local conflict dynamics and emerging risks. This will ensure a greater degree of sustainability of long-term development programs that address not only economic, but also other human development goals. This paper suggests that development assistance could be a more effective tool for consolidating peace in Sri Lanka by: Increasing coordination among traditional and non-traditional international development partners, Encouraging wider citizen participation in development processes, Engaging non-state actors such as civil society organizations (CSOs), trade unions and business communities, Establishing an early warning process for regular analysis and dissemination of emerging economic development trends and Allowing independent structures for evaluation and monitoring of project processes.