This study delves into the socio-economic challenges affecting Type 3 school libraries in the 'Thenmarachchi' education zone of Sri Lanka. Utilizing a mixed-methods approach involving surveys and interviews with librarians from 27 schools, it identifies barriers such as financial constraints, resource limitations, and declining reader interest. Correlation analyses reveal intricate relationships between these barriers. Notably, collaboration with non-governmental organizations (NGOs) emerges as a significant strategy, showing potential to alleviate financial constraints and enhance resource availability. Qualitative insights highlight community involvement and reading initiatives as complementary to proposed strategies. This study advocates comprehensive approaches to address socio-economic obstacles in fostering school library development, emphasizing the need for further research to evaluate the long-term sustainability of interventions.