Abstract: Ideological Paradox of Practices of Good Governance in Local Government Institutions in Sri Lanka Local government is core stone of the democracy and development of the given country. Global trend of the local government has been rapidly changed and have adopted principles of good governance in their local institutional systems in the world. Local government system in Sri Lanka has to be changed with parallel to global trend in term “Good Governance”. Nature of Local government is significant regarding determine shape and nature of the democratic political culture of the given society as whole. Global objective of the local government is to archive millennium goals by adopting principles of good governance in practices. Sri Lanka is democratic country with consist their own local government system since long historical time line. One of the main purposes of this local government system was to enhance democratic practices by adopting universal trends such as practical aspect of good governance and deliver rapid and quality service for the ordinary citizens for their social wellbeing. Yet, recent trend has emphasized that most of local government institutions has been reflected lack of adopting and practices of good governance principles with regard quality and accountable services in their institutional practices. Why? The overall objective of this paper is to explore the main reasons behind the failure of good governance in practices of existing local government institutions. This research, specially, focused on practices of good governance in local sphere. As a methodology, secondary data has been applied to gathering facts and information regarding content analysis. Therefore, global literature has been accessed for gathering information. Main scholarly writings and interpretations and arguments have been reexamined in this paper. There are many reasons has been recovered with regard failure of good governance in practices. Specially, pro nationalistic ideological influences and party dominations have been impact on practices of good governance in local government functions and services. Grass root social composition and elite dominations has been manipulated local institutional system and their functions. Weak civil society and their activities have been created a favorable environment for the corrupt oriented local institutional system. Also, electoral system and behavior of the elected people have negatively impacted on good governance of the local government institutional system in Sri Lanka. Index Terms: Nationalistic Ideology, Weak Civil Society, Global Trends, Good Governance, Local Government Institutions.