Reforming local government has been on the political and policy agendas of Sri Lanka’s governments since independence. Political thinkers have often recognized the capacity of local government to make room for more democracy. Some questions asked are: Why should Sri Lanka’s local government be reformed? What objectives should any new reform of local government serve? Reflecting on these questions would be helpful to envision a sustainable system of local government that will deepen Sri Lanka’s democracy. The paper highlights the weaknesses in local government in Sri Lanka. There has recognition that Sri Lanka’s local government has been in a state of ‘crisis’ for some time. Some of the major weaknesses listed are: dominance of the central government in the affairs of local government; political dependence for resources; lack of dynamism; absence of people’s participation; local power elites; perpetuation of social and political exclusion; lack of accountability and responsiveness and lack of accessibility. To rectify these issues, the paper suggests: making local government the ‘third tier’ of government; strengthening the institutional capacity of local government and bringing the local government under the control of the central government.