The main objective of the project is the preparation of a Strategic Action Plan for Urban Poverty Reduction through Participatory Process. The subject area of poverty reduction has always been a national concern in Sri Lanka. However, the present project is being the first ever city level effort to identify the issues and strategies to reduce urban poverty in Colombo. The significance of the project lies in its emphasis in reducing urban poverty through a community empowerment process. The Poverty Profile for Colombo is a result of an intensive combined effort of urban poor communities, the officials of the municipality and other stakeholders in identifying the key issues, the perspectives, strategies and actions for reducing urban poverty. The process relied on a bottom up consultative approach at every crucial stage of preparation of the Poverty Profile. During the course of consultation process the participating stakeholder groups have identified the following issues as being major concerns relating to improvement of urban poor settlements. Deficiencies in municipal service delivery system for the poor; Centralized municipal functions with inadequate capacity to respond the community needs and inadequate community representation in the municipal decision making process.