This study attempts to identify the problems in market integration and the potential in private sector investments through attracting capital and technology to Sri Lankan agriculture. The study reveals the sub-sectors in agriculture with potential for investment, particularly vegetables, spices, cut-flowers, cut-foliage and gherkin which are viable agricultural sub sectors for private sector investment. The report spells out the strategies and policy options necessary to attract investment and technologies through the private sector. Finally, the study highlights the importance of building partnerships between the state and the private sector and emphasizes the dynamic role of the state in encouraging investment.