The article discusses the ways to resolve the intra-state conflict in Sri Lanka, examines the successes and failures in the process of overcoming the conflict between the Sinhalese and Tamils, the fight against terrorism and the activities of the radical organization “Tigers of the Liberation of Tamil Eelam”. Particular attention is paid to the phenomenon of the post-conflict peacebuilding in Sri Lanka and the fight against separatism. The postwar period in Sri Lanka has generated some important research focusing on understanding and analyzing the nature of the postwar state, reconciliation in war-torn areas, and reconstruction and development. Relations between the parties to the violent conflict are examined through the prism of the Indian factor. The article argues that the government used its position as the winner to consolidate and strengthen power at the center, and failed to address the main grievances of the losing side. The article reviews some political and economic measures provided by the government to overcome the consequences of the violent conflict. The specific context of a total war victory for one of the sides poses particular challenges for successful peacebuilding. None of the attempts were able to produce an environment where a process of reconciliation and conflict transformation could be materialized. The article gives ample coverage of the failure of state institutions, including the military, to provide services in Tamil. The article looks at the interconnectedness between conflict issues, attitudes, and behavior and how they jointly shape postwar societies and the conditions for sustainable peace. The article summarizes that Sri Lanka became further polarized and the progress towards sustainable peace was hampered by a society that was unjust and fearful.