The paper proceeds on the premise that these issues could be best understood by a proper understanding of the nature, character and types of informal enterprise. The next section provides a definition of the informal sector and discusses the nature and extent of informal enterprise in Sri Lanka. The third section provides a brief literature review. The fourth section discusses the impact of globalisation, liberalization and privatization on informal enterprise. The fifth section is devoted to the issue of how government, provincial and municipal policies impact on informal workers. The sixth section reviews the impact of labour legislation on informal enterprise and the role of trade unions. The seventh section discusses the policy issues that should be addressed and the needed directions in policy to assist informal enterprise and workers. A summary of the pertinent issues discussed in the paper and the conclusions are presented in the final section. Source: The Informal Sector in Sri Lanka: Its Nsature and Extent and the Impact of Globalisation