The main objective of the research was to identify the factors leading to the rejection of the “Sahaspura” slum relocation project by the target group and to draw conclusions about what needs to be improved for them to be able to improve their lives through resettlement and thereby also benefit from development causing their resettlement. The specific research objectives were to examine the factors that attract and keep slum dwellers in their original settlements, examine how the planning and implementation of the project was carried out and to identify perceived changes living in a high rise would bring about in the lives of the target group. The research was conducted as an exploratory descriptive type of research and “Sahaspura” resettlement project was treated as a holistic case study. A target group survey, focus group discussions and interview techniques were used to find out answers. The research findings indicate that the livelihood assets of the target group had a strong relationship with the decisions they made. The most influential factors that made a section of the target group to refuse to be resettled and another section to sell off their housing units and move out were the perceived and experienced effects to the ability of obtaining basic services, tenure, social disarticulation in every aspect, loss of income opportunities and dissatisfaction with compensation. The study also revealed that there are certain aspects of project implementation that need to be changed in order for the target population to be more receptive to such projects. Therefore, it could be concluded that “Sahaspura” slum relocation project failed to achieve its objectives largely because the resettlement process did not address the disarticulation of community and other socio-economic aspects. Source: Factors contributing to the failure of development induced resettlement projects: a case study of the “Sahaspura” slum relocation project, Colombo, Sri Lanka