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Jaffna Local sheep (JLS) is an endangered indigenous sheep population in Sri Lanka. They have been identified as a breed that has a negative population trend. A study was undertaken to identify the sustainability dimensions of JLS production system. Socio-economic data were collected using a pre tested questionnaire from three leading sheep farms in the Jaffna peninsula, Sri Lanka. The results show that the farmers were having more than 40 years of experience in sheep farming. The sheep were reared with minimum inputs in a nomadic pastoral system. They were reared mainly for manure purpose. On request of the crop farmers, sheep are night paddocked in farm lands such as fallow paddy fields, coconut and palmyra lands. In addition, when the stocking rates are high the excess sheep are sold for meat purpose. Only extensive management is undertaken with a low input system. The sheep are hardy and well adapted to the hot and humid climate in the Jaffna peninsula, Sri Lanka and they convert the low-quality fibrous feed (weeds and crop residues available in the feeding grounds) into nutrient-rich meat with low contamination of medications (antibiotics). The dung and urine enrich the soils with nutrients enabling the crop farmers to cut down on the use of inorganic fertilisers. The household income is stabilized via the earnings from sheep system. Overall, the system showed that the resources are shared among the farming community with less negative impact on the environment. Main drawbacks in the system were the reluctance of the younger generation to be engaged in the JLS farming and the scarcity of feed during the drought period and main paddy cultivation season.