Most of the low-income, under-educated mothers in rural areas of Sri Lanka are disadvantaged and unable to provide their children with a healthy home environment, guidance, or the material support required for their children's education. This study hypothesized that educating low-income, under-educated mothers to develop their own literacy skills would enhance their capacities to develop their children's language competencies. The sample consisted of 20 low-income, under-educated mothers whose children were in grade 2 in the village of Uyanwatta in the District of Kandy in Sri Lanka. Literacy development activities related to 4 major components of language development were conducted with the mothers for 8 weeks. The mothers' skill development was measured by a 5-point Likert-type rating scale and by observations made by 4 observers on mother-child interaction activities. The data revealed that educating low-income, under-educated mothers to develop their literacy skills enhanced their capacities to assist their children's language development to a greater level in listening and speaking than in writing and reading. (Contains 42 references.) (Author/SD)