This report was prepared as a result of the Colombo Municipal Council’s vigorous commitment to implementing its programme for “Participatory Improvement of the Underserved Settlements” (USS). Towards this, end an opinion survey of four settlements in Colombo, comprising of two of resettlements and two shanty settlements, all in relative proximity to each other, was carried out, establishing the views, hopes and anxieties of the resident population on the subject of settlement. The report documents some of the experiences of urban slum and shanty dwellers in Colombo, who were resettled into two newly constructed housing projects, as well as experiences of those who are not yet resettled and still live in slum and shanties in close proximity to the resettlements. The salient findings of this report are the characteristics of urbanization and urban poverty in Sri Lanka; and the living conditions, livelihood issues and intra community social relations, with particular attention to conflict and cooperation in the study communities. The report concludes that the main objectives of resettlement of the urban poor in Colombo are: a) provision of decent housing to disadvantaged urban dwellers and b) riding the city of Colombo of substandard, squatter and slum settlements.