An Assessment of Performance, Employment Generation, and Stakeholder Satisfaction of Dedicated Economic Centers in Sri Lanka’s Vegetable Sector

Abstract

Agricultural markets play a vital role in connecting producers and consumers. However, in Sri Lanka’s upcountry vegetable sector, smallholder farmers continue to face challenges due to weak governance structures and inadequate infrastructure. This study assessed the performance and socio-economic impacts of Dedicated Economic Centres (DECs) in Sri Lanka’s upcountry vegetable sector, focusing on Nuwara Eliya, Matale, and Badulla. The main objective of this study is to evaluate market functionality, examine social outcomes, and identify areas for operational and institutional improvements. Primary data were collected from market participants, including farmers, traders, transporters, and service providers, and supplemented with DEC transaction records from 2022 to 2025. A Market Functionality Index (MFI) was developed to assess infrastructure quality, operational efficiency, transparency, stakeholder satisfaction, and accessibility, while a Social Performance Index (SPI) measured employment generation and stakeholder satisfaction. The results showed that Dambulla DEC achieved the highest MFI score (0.72), followed by Keppetipola (0.69) and Nuwara Eliya (0.57), indicating differences in efficiency and governance. In terms of social performance, Nuwara Eliya DEC led with an SPI of 0.875, while Badulla (0.525) and Matale (0.275) demonstrated moderate to low social outcomes. The study concluded that DECs played a significant role in enhancing market efficiency and supporting rural livelihoods; however, targeted improvements in infrastructure, administrative coordination, and stakeholder engagement such as expanding cold storage facilities and strengthening information systems were needed to enhance inclusivity, resilience, and the overall effectiveness of the DEC network.

Keywords: Governance, Infrastructure, Market Functionality Index (MFI), Social Performance Index (SPI), Stakeholder Satisfaction