Poverty reduction remains one of the frequently articulated public policy objectives in Sri Lanka. However, the achievements made so far in regard to poverty reduction have been sub-optimal in relation to expectations that have been aroused amongst the poor and the public resources that have been invested in the effort. It is the view of the discussion that the failure to achieve the expected outcomes from the series of exercises in relation to poverty reduction is the result of a series of governance-related issues. These relate to: the degree to which the objective of poverty reduction influences the direction and content of public policy; accountability and transparency networks that relate to the formulation and implementation of policies, strategies and interventions that have a bearing on poverty reduction; the degree and level of involvement of the poor as active partners in the formulation and implementation of public policies, etc. that have a bearing on poverty reduction; and the institutional underpinning as well as the process support that is required, in the Sri Lankan context, for effective attempts at poverty reduction.