A.S Jayawardena begins by highlighting that an overwhelming majority of the rural population are low income earners. The development of rural areas has been and will continue to be a core ingredient of Sri Lanka,s development policy. Prior to Independence in 1948 economic development was concentrated in the plantation and export sector. However, due to the increase in food shortages the focus was shifted to food production and the rural economy at the start of the 20th century. The government should address the problems of the rural economy through infrastructure development, transfer of technology, building of schools and hospitals, provision of housing subsidies and many other development reforms. A.S Jayawardena concludes by stating that interventions should be market-related and market-friendly as it would be unwise to create market distortions as non-competitive markets are imperfect and exploitative. The development of the rural economy is essential to the progress of any economy and therefore it is important that the needs of rural communities are addressed.