Existing scholarship from developing countries explores the dynamics of identity/ethnocentric politics and finds that in fragmented societies, politicians’ identities tend to influence government policies to favour their own community or group. Against this backdrop, the article explores how the Hill Country ethnic minority community of Sri Lanka influences the policy process through electoral politics. Findings reveal that ethnic minority parties systematically use rational choice theory to influence policy processes to gain material and welfare benefits. The study highlights the fact that ethnic parties tend to induce strong ethnic feelings using ethno-populism to mobilize voters, provide unconditional support, maintain an ever-changing coalition with the ruling administration and have political bargaining based on ethnic headcounts to influence policies. The article informs that this pattern is harmful to post-conflict societies striving for sustainable peace and reconciliation and highlights the necessity of inclusive and impartial policies and institutions, political consolidation and inter-ethnic justice to accommodate ethnic minorities in the mainstream politics and development to prevent deepening ethnopolitical cleavages in the guise of electoral politics.