A thesis submitted in partial fulfillment of the requirements for the degree of Master of Science of the Asian Institute of Technology, Bangkok, Thailand.

Thesis (M.Sc.) - Asian Institute of Technology, 1978

The study investigates the nature of dependency relationships between the peripheral settlers and the center businessmen in a colonization scheme in the Dry Zone of Sri Lanka. two forms: The dependency relationship studied takes the direct dependency and the indirect dependency through small businessmen in the periphery. The study tests two hypotheses using stepwise multiple regression to analyze two functional relationships of dependency. The first one is concerned with the dependency of settlers on the peripheral traders in the sphere of the distribution of goods while the second one is concerned with the dependency of settlers on the center trader in the marketing of produce. In the first model the results showed that dependency on the peripheral trader is related to the credit sales by him; in the second model it was found that the dependency is related to the settlers' dissatisfaction with the cooperative and their awareness of service facilities in the colony. To correct this situation the study suggests the establishment of a separate collecting organization, the change of the cooperative distribution and the organization of the administration of the colony at the grass root level.