In 1995, The UN hosted a summit on Social Development and as a result initiated the 20/20 approach. The 20/20 Initiative encourages governments to allocate 20 percent of their expenditure to basic social services, such as health and education. In Sri Lanka, high priority is placed on social spending, with consequent benefits in terms of human development. This emphasis has also been frequently brought up as an example of the misallocation of resources, which might have been better invested in economic development rather than social development. This publication aims to contribute to this debate both in Sri Lanka and overseas. The report outlines key issues that range from per capita expenditure on basic social services, to who benefits from these services. The scope to reallocate resources within and between sectors, ensuring that unit cost remains low and quality consistent is also highlighted. Other important areas, such as how efficiency can be improved are also emphasized in this publication.