The last Country Assistance Strategy (CAS) for Sri Lanka, prepared in 1996 was done at a time of great uncertainty with regard to the prospects for peace, political stability and economic reform. Since then, Sri Lanka has been through numerous elections that slowed the momentum for structural reform. At the same time domestic security situation worsened as a result of the intensification of the nearly two decade long civil conflict in Sri Lanka. This period of uncertainty has been costly to the development of the Island. This CAS has been drawn up on the basis of the post-conflict situation in which Sri Lanka finds itself currently. Lessons from other post-conflict situations have been incorporated. The purpose of the CAS is to set out a selective program of Bank Group support linked to the country’s development strategy and based on the Bank Group’s comparative advantage in the context of other donor activities. CAS’s are designed to promote collaboration and coordination among development partners in a country.