The present study aimed to investigate how the presence of diverse governing bodies and local actors with conflicting interests hinders the implementation of early childhood care and education (ECCE) policies, resulting in the exclusion of children from ECCE programmes in the plantation sector, one of the most marginalized social sectors in Sri Lanka. The research employed a qualitative case study design, collecting data through in‐depth interviews (N = 29) and two focus‐group discussions. The thematic analysis revealed that child development outcomes in the estate/plantation sector are at risk primarily due to exclusion of children from ECCE programmes caused by conflicts between local governing bodies and local actors, which impede partnerships for policy implementation. The conflicting interests of diverse governing bodies and local actors at the community level act as a filter through which government‐proposed ECCE programmes are reinterpreted and ultimately rejected. The implications of the present study thus suggest that despite the restraining influence of local governing bodies and local actors, there is a potential for participatory governance that can foster collaboration between government institutions, local‐level governing bodies and local actors.