Harnessing Digital Transformation: Technological Intervention as a Catalyst for Rural Agri-Enterprise Growth and Poverty Reduction in Mullaitivu District of Sri Lanka

21 Jan

Authors: Malathy P

Abstract: Despite national poverty reduction, the Mullaitivu District in post-conflict Sri Lanka remains a statistical outlier with one of the highest poverty headcounts in the country. This study examines the potential of agricultural entrepreneurship, transitioning from subsistence farming to market-oriented enterprise, as a transformative strategy for sustainable poverty reduction. Specifically, it investigates how technological intervention, including digital transformation and mechanization, acts as a catalyst for growth in rural agri-enterprises. Adopting a mixed-methods approach, this study empirically analyzes data from 150 rural households in Mullaitivu. It employs the Sustainable Livelihoods Framework and Innovation Diffusion Theory to explore the relationships between entrepreneurial orientation, technological adoption, and multidimensional poverty outcomes. The research identifies technological intervention as a critical catalyst for economic growth, demonstrating that access to modern tools, such as precision irrigation (drip and sprinkler systems), mechanization, and digital platforms, significantly boosts the income-generating capacity of rural farmers. This digital transformation is further revolutionizing the sector through mobile connectivity and e-commerce applications, which allow farmers to bypass traditional middlemen, access real-time market data, and achieve deeper market penetration. However, widespread adoption remains constrained by structural barriers, including high initial costs, inadequate digital infrastructure, and a lack of specialized technical expertise. Ultimately, the study highlights a powerful synergistic effect, concluding that technological interventions are most effective when integrated with human capital development, particularly targeted at women and youth, and supported by inclusive financial mechanisms. The research concludes that agricultural entrepreneurship is a strategic tool for breaking the cycle of structural poverty in rural regions. It recommends that policymakers prioritize "enabling" rather than "prescriptive" interventions, focusing on rural digital infrastructure, digital literacy, and flexible credit schemes to foster a resilient entrepreneurial ecosystem.

DOI: https://doi.org/10.5281/zenodo.18325883