A pilot project for the establishment of a microcomputer-based data system for village level planning and rural development in Sri Lanka was initiated by the Government in January 1983 to investigate the problems and possibilities of improving information management at the local level. Kalutara District was chosen as the site of the pilot project for a number of reasons. An outline of the administrative and planning structure at the district level is given and the scope and objectives of the project described. The more important issues of implementation then discussed are: links with budgetary and statistical organizations; identification of short-term and long-term project components in line with established priorities; hardware and software requirements; and costs. Finally, the implications of the pilot project for decentralized information services in developing countries are examined. On the basis of the results of the pilot project, the Government is now committed to developing the information infrastructure of the other administrative districts in Sri Lanka.