Agricultural development in most instances is identified as a process of dissemination and use of technological innovations.Such processes with a bias towards technological transformation usually trend to overlook the usefulness of alternative development strategies which are outside the realm of technology.Some of these development alternatives involve introduction of institutional mechanisms to improve social welfare of farmers by providing them income stability. As a step towards this direction,government of Sri Lanka in 1987 launched an innovative institutional strategy referred to as farmer's pension and social security benefit scheme.The scheme is basically an insurance mechanism that provides disablement benefits and death gratuities to those enrolled in the scheme by paying a six monthly premium.The scheme is also designed to provide a monthly pension to the participant on reaching the retirement age of 60 years.This paper focuses on the spread of innovation among the target group mainly with a view to identify the process of dissemination and the diffusion trends underlying the FPSSB scheme.