Even though there is an emerging literature on information age reform of the public sector, research focused on potential and problems related to introduction of information-based reforms in developing countries is still limited. Thus in this chapter, experience in one developing country, Sri Lanka, is examined. Problems related to information-based technology is analysed and the lacuna in the literature is narrowed. It is argued that despite the great potential for IT in enhancing effective and efficient public sector in Sri Lanka, there are a number of difficulties hindering the development of computerised information systems. The upgrading of infrastructure facilities in Sri Lanka is long overdue. A lack of competent and committed individuals who could provide effective guidance in developing IT services in the public sector is another concern. The issues such as appropriate training, attractive promotion systems and remunerations for public officials need to be addressed urgently. Reforming existing organizational structures and changing officials’ attitudes towards change are essential. The increasing public awareness of the potential of IT services enhancing the quality and timeliness of the public service is essential.