Abstract:
Tea is one of the most widely consumed and reasonably priced drinks in the world. It is
one of Sri Lanka's major export commodities, signihcantly contributing to national
income and providing employnent to a large segment of the population. Smallholders
manage about 60% of the country's tea land and are responsible for around 70o/o of the
total tea production. However, smallholders often use traditional methods, which can limit
productivity and sustainability. They face difficulties in accessing modern agricultural
technologies and practices. Despite these challenges, their contribution is crucial for local
economies and rural development. In this context, this study aims to investigate the impact
of entrepreneurial abilities and sustainable practices on the performance of tea smallholder
farmers in the Matale District. 100 tea smallholder farmers were selected using a simple
random sampling method, and a pre-tested structured questionnaire was used to collect
the data. The data were analyzed using SPSS version 24 software. Descriptive statistics
and multiple regression analyses were conducted to analyze the variables. The results of
the demographic analysis showed that 55%o of the farmers were aged 56 and above,690/o
ofthe respondents had at least a secondary education level, and 610/o ofthem had been
farming for more than 16 years. It was observed that 25o/o of respondents' main source of
income is from tea cultivation, while 39Yo depend on other sources of income. The
multiple regression model explains 50.5% of the variance in tea smallholder farmers'
performance, with an adjusted R-squared of 0.436, indicating a good fit. This study shows
that factors such as decision-making ability (p: 0.038), land size (p: 0.003), and family
monthly income (p : 0.033) positively influence the performance of srnallholder tea
farmers. Conversely, innovation ability (p : 0.012) and gender (p : 0.017) negatively
influence performance. These findings suggest that enhancing decision-making ability,
optimizing land use, and improving financial stability can positively affect smallholder
performance. Addressing barriers to innovation and gender-related issues is crucial for
better outcomes. Future interventions should focus on these areas to support and improve
the productivity of tea smallholder
