OIDA International Journal of Sustainable Development
Open-access peer-reviewed journal
https://doi.org/10.64211/oidaijsd190916
From Latex to Livelihoods: Assessing The Wealth Impact of Rubber Farming Among Smallholders in the Intermediate Zone of Sri Lanka Using a Propensity Score Matching Approach
K. K. S. Gunarathne 1, T. M. S. P. K. Thennakoon 2, 4, J. C. Edirisinghe 3
1 Advisory Services Department, Rubber Research Institute of Sri Lanka, Telewala Road, Ratmalana, Sri Lanka.
2 Department of Geography, University of Sri Jayewardenepura, Nugegoda, Sri Lanka.
3 Department of Agribusiness Management, Faculty of Agriculture and Plantation Management, Wayamba University of Sri Lanka, Makandura, Sri Lanka.
4 International Center for Multidisciplinary Studies, Faculty of Humanities and Social Sciences, University of Sri Jayewardenepura, Nugegoda, Sri Lanka
*Corresponding authors: sunethrapk@sjp.ac.lk, | kapila.s.gunarathne@gmail.com
Volume 19, Issue 09, Pg. 264-278, 2026.
Abstract: Rubber (Hevea brasiliensis L.) farming was established in Moneragala District (6.7563° N and 81.2519° E) situated in Intermediate Zone by the Government of Sri Lanka, in order to uplift the wealth status of households. This study was carried out to identify and quantify the impact of rubber farming on smallholder community in Moneragala through assessment of major household assets. A questionnaire survey was conducted in 2023, using stratified random sampling with 1026 rubber and non-rubber smallholders’ households. This study employed one-to-one nearest neighbor matching algorithms with the propensity score-matching estimation approach to examine the direct impacts of rubber farming adoption on household wealth in Intermediate Zone in Sri Lanka. A household wealth index was developed using principal component analysis incorporating 9 characteristics of living houses, 25 types of household assets and 8 types of agricultural and non-agricultural vehicles. The average treatment effect indicated that the adoption on rubber farming has had a positive and statistically significant effect on household wealth by 16.3%, which is higher than in households of non-rubber smallholders. The government policy should focus on expanding and promoting rubber farming in the Intermediate zone in Sri Lanka to enhance the wealth status of smallholder households.
Keywords: Impact; Rubber farming; Smallholders; Wealth index; Well-being
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