The study aims to recognise the important role played by different generations of settlers who are in the process of making changes to alleviate poverty and attain their various objectives in Sri Lanka. The paper states that the Dry Zone colonisation strategy has changed the socio-economic landscape of rural Sri Lanka. However, inequalities and unrecognised dimensions of poverty are on the rise and pose many challenges in the lives of the settlers.

The paper notes that the perceptions of what constitutes poverty were wide ranging in the settlements. Indeed, they were rooted in factors such as basic needs. The paper argues that the settlers’ perceptions add new dimensions, different experiences and different contexts to such dimensions.

The main findings of the paper are:

• settlers’ perceptions of poverty are linked to the changing social perceptions of poverty which in turn are influenced by increasing links with the outside world
• participants mixed the causes of poverty with the dimensions of it
• there has been little emphasis placed on land as a dimension of poverty among the second and third generations
• income-based dimensions still dominate policies and planning even though the multi-dimensional nature of poverty has been accepted
• it is essential to take different generations into account when framing policies and planning programmes related to poverty alleviation
• how to translate the individual’s insights and perspectives into changes in policy is a major challenge.

In conclusion, the paper states that by combining people’s perceptions of poverty, a livelihood approach to poverty can capture more detailed understanding of why people change their livelihoods. Moreover, it can clarify what goals they have, how they respond, what constraints and opportunities they face, and what the outcomes are.

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