Development of a sector model for agricultural policy analysis in Sri Lanka (SLASM)

The methodological advancements in agricultural sector modelling over the years are substantial. The literature deals with many aspects of reality, which are not covered in classical mathematical programming models. The advanced developments mainly aim to integrate different methodological elements into a comprehensive modelling framework. The Sri Lankan model developed in this study is the second attempt to model agricultural sector in the framework of mathematical programming approach and the first study on positive mathematical programming approach. Sri Lankan model entails many hypotheses that correspond to early work of positive sector modelling. Model design and hypothesis are mainly grounded on classical PMP approach combined with standard partial equilibrium trade models. The model applications show its aptitude and the usefulness as a policy analysis tool to support the decision making process in agricultural sector of Sri Lanka. In this context more experience has to be gained by continuous application and rationalization of the policy making process. Beside the necessity for permanent updating, methodological improvements and extension should be followed in the future.