as the wages offered by the security services significantly raise the standard of living for soldiers and their families. In order to reduce rural poverty (and thus poverty as a whole), rural development in terms of infrastructure is important. The need for a better road network and transport system to link up the rural areas as well as better credit facilities to aid in the investments of new technology and farming techniques are just a start in ensuring that the rural poor are not left behind. While it is identified that development in the rural areas is crucial for poverty alleviation, the government cannot possibly channel unlimited funds into development plans without constraints, disregarding potential developments in urban areas, or more importantly, not considering the state of its overall economy. Therefore, the Sri Lankan government faces a dilemma of pursuing growth that is equitable; trying to promote economic growth without leaving the poor in the rural area behind. Apart from government policies, Non-Governmental Organizations (NGOs) help ease the situation too. One of them is Sarvodaya. Sarvodaya is Sri Lanka's largest NGO, which includes many other divisional units dedicated to different development projects. Sarvodaya Economic Empowerment Development Services (SEEDS) began its operation as a separate division in 1986 and now reaches 18 of Sri Lanka's 25 districts. SEEDS is responsible for building the economic capacity of the poorest groups within the communities. Its aim is to stimulate an attitude of entrepreneurship, innovation, thrift and sustainable development in the rural areas. Although SEEDS does not directly deal with the lack of physical infrastructure in rural areas, i.e. development plans in building roads, bridges, etc., it has helped people in rural areas to be a financially independent and improved livelihood, which in turn helps reduce rural poverty. It hopes that through their aid, villages can become self-governed and capable of serving their community's economic and social needs. SEEDS provides saving and credit services for starting a small enterprise or to improve livelihood as well as non-financial services such as business counselling, training in technical skills and market information. It uses the village banking microfinance model to help the rural communities. Village banking treats the whole community as one unit and establishes semi-formal or formal institutions through which micro-finance is dispensed. The banks are run by their own people: they choose their members, elect their own officers, establish their own by-laws, distribute loans to