This exploratory study is focused on three districts in the Eastern Province and confirms that children are affected both directly and indirectly by armed conflict. Given the long timeline of the conflict in Sri Lanka, many older children and adults have been exposed to extreme periods of violence and insecurity and continue to live with a constant sense of fear. Most children were affected by the conflict throught poverty; almost every household covered by this study has become poorer as a result of the conflict. They have lost land, property and livelihoods and in some instances, children have been forcedby their circumstances to become income earners. Conflict-indused poverty in the region which has an inadequate and dilapidated infrastructure, has also affected the development and well-being of children.