This study examines the constraints that exist in promoting rapid agricultural and rural non-farm sector growth in Sri Lanka. It aims to review the recent performance of the agricultural and rural non-farm sectors with particular focus on the non-plantation agricultural sector; to scrutinize the major policy and regulatory impediments that hinder more rapid and sustained growth in rural areas and finally to propose options for improvement in key areas. The study is divided into several chapters that examine the following themes: the changing role that agriculture plays in the rural economy; the recent performance of the agro-industrial sector; the changing policy environment in agriculture and existing constraints to more rapid growth; the policy environment in the rural non-farm sector, access to infrastructure and services in rural areas; and policy options for removing these key constraints.