This article examines the links between militarised violence and social cap
ital (trans)formation. It first maps out emerging theoretical and policy de
bates on social capital and violent conflict and questions a number of the
assumptions underpinning these debates. This is followed by an empirical an
alysis of several war-affected communities in Sri Lanka. The case studies i
llustrate that the links between militarised violence and social capital ar
e complex, dynamic and context specific. It is argued that social capital c
annot be understood in isolation from political and economic processes, and
the belief that violent conflict inevitably erodes social capital is quest
ioned. Finally, the implications for external agencies are highlighted. Rat
her than focusing on engineering social capital, external agencies need to
focus on understanding better the preconditions for social capital formatio
n and how they can contribute to the creation of an enabling environment. T
his requires as a starting point a rigorous analysis of political and econo
mic processes.