Since Independence in 1948, Sri Lanka’s development strategies have reflected a strong welfare emphasis. However, in spite of the effort to create economic growth and to enhance welfare through targeted welfare and poverty alleviation programmes, the results have not been up to expectations as, nearly a quarter of the population still live in poverty. This study assesses the effectiveness of the Samurdhi Programme in alleviating poverty. Data for this study comes from a questionnaire that was handed out to one hundred Samurdhi beneficiaries, and unstructured interviews and discussions conducted with both the Samurdhi beneficiaries and the Samurdhi Officials. The study provides conclusions regarding the effectiveness of the Samurdhi Programme, and also includes proposals for reform.