Even though a monitoring and evaluation system has been in place in Sri Lanka for a considerable period of time, it had serious limitations in scope, both in respect of geographical coverage and content, which in turn has created this situation. It had not sufficiently touched the vital aspect of the impact of project interventions and also had not been completely successful in expediting the implementation process. This study was carried out with the aim of documenting the project cycle as it exists at present, and to identify the strengths and weaknesses in the cycle. The study was also initiated to document the institutional arrangements that have evolved, to manage the various stages of the cycle.