The pre-British feudal political-economic structure of the Kandyan kingdom was almost completely destroyed by the modernising forces during the British rule. However, the question which remains unanswered is whether feudalism or pre-capitalism has been completely replaced by capitalism. Despite the apparent diversity of production relations in non-plantation agriculture, the capitalist relation in general has been dominating the process of production, distribution and exchange. In addition, the process of concentration by way of production and exchange, particularly land, has also expanded in recent times. Even though the production and the productivity of land in the areas where new techniques of farming have adopted and reached high levels, the increased commercialisation has affected the agricultural produce as the surplus has been continuously taken away from the villages. This has resulted in keeping the landless and small producers below poverty levels despite the increasing volume and prices of what is being produced. This study therefore, is intended to be a contribution to the growing body of social anthropological research on social stratification in grass-roots-level communities.