Abstract:
Agribusiness has rapidly gained recognition as one of the most important
economic sectors in the world. According to Harvard Business School, it consists of all
the participants in a vertical food system from input supplier to farmer to processor to
distributor to ultimate consumer. Agribusiness involves those individuals and
organizations engaged in the production, processing, transport, storage, financing,
regulation and marketing. It provides a range of employment opportunities to people
while enabling them to contribute immensely in the national development. Agriculture
is the backbone of the Sri Lankan economy.
Agriculture constantly experiences advances in technology. Because of the
rapid development in the world, each organization or person has to keep pace with the
technology from design to delivery of products and services. Technologies are
becoming powerful, and business is becoming more dependent upon them. Managers in
the 21st century must be able to compete effectively in global markets with the
assistance of technology.
Sri Lankan agriculture, which has a lot of scope for improvement in farming
and allied activities, is undergoing a rapid change. Traditional agriculture which has a
relatively low cost has been replaced by new technology and modernization which is
relatively costly. Capital investments in agriculture have increased to larger extent with
the modern technology. Even though, the agriculture sector of Sri Lanka plays a
significant role by contributing 16.8% to the GDP and generating 32.2% of employment
opportunities, most farmers who are involved in agriculture are unable to implement
modern agriculture technology due to scarcity in capital investment.
This research paper contributes to understand the state of adoption and use of
technology at present and identifies the constraints associated with it in the
organizations and persons engaged in agribusiness in the province. It proposes
recommendations with strategic and managerial implications towards the improvement
of present system used in agriculture sector in the Eastern Province of Sri Lanka.
