The non-plantation agricultural economy of Sri Lanka has undergone a noticeable transition from 1978, compared to the period 1970-77, mainly due to economic reforms implemented in the country from 1978. This paper aims to: describe the major policies towards non-plantation agriculture from 1970 to date; analyse the diversification and commercialisation of non-plantation agriculture by examining the trends in prices of commercial food crops vis-à-vis subsistence food crops, and the trends in area, production and yield of commercial food crops and agro-industrial crops vis-à-vis subsistence food crops; examine the outward orientation of non-plantation agriculture by analysing trends in imports and exports; and investigate the current issues and future prospects for non-plantation agriculture.