This study report presented by the Ministry of Healthcare and Nutrition is of a research study undertaken for the Annual Health Forum, 2007. The general objectives of this costing study wereto compare recurrent and capital investments for health against selected categories for predetermined districts in Sri Lanka and to estimate unit costs of predefined services in the public and private health sector, for comparison. To achieve these objectives, the researchers based their general approach on building on existing methodologies and on work that has been carried out in Sri Lanka by others.