Human capital is a central determinantof economic well-being and social advancement in the modernworld economy. The concept of human capital covers theknowledge, skills, nutrition, and health that peopleaccumulate over their lives, enabling them to realize theirpotential as productive members of society. This Sri Lankahuman capital report has several objectives. First, thereport serves as a vehicle to explain the Human CapitalProject (HCP) and Human Capital Index (HCI) to an audienceof national and provincial policy makers and technocrats,and academics and researchers. Second, the report analyzesthe main achievements and challenges in human capitaldevelopment in the context of the World Bank’s HCP, with aspecial focus on the variables covered in the HCI. Third,the report applies the HCI to an analysis of regionalvariations in human capital in Sri Lanka. Fourth, the reportpresents policy and program options for Sri Lanka to combatthe main challenges identified in the analysis of the HCIvariables. Fifth, some strategic options broader than theHCI but within the scope of the HCP are discussed.