Sustainable Tourism and SMEs: Aligning business models with SDGS in Sri Lanka
Author Identifier (ORCID)
Upuli Sachithra Warnakula: https://orcid.org/0009-0000-3856-0976
Abstract
Purpose: This chapter explores the potential of tourism small and medium enterprises (SMEs) in Sri Lanka to foster sustainable development by aligning their business models with the United Nations Sustainable Development Goals (UN SDGs). The research aims to identify the chal-lenges and opportunities SMEs face in integrating sustainability practices while contributing to economic growth and environmental protection. Design/Methodology/Approach: A qualitative research design was adopted, involving 176 interviews with SME owners and operators from the Uva Province, Southern Province and the Cultural Triangle. The study examines the economic, social and environmental barriers that hinder the transition to sustainable business practices within Sri Lanka’s tourism sector. Findings: The study finds that despite the potential of tourism SMEs to contribute significantly to SDGs, challenges such as limited financial resources, lack of policy support and insufficient knowledge of SDGs restrict their capacity for sustainable development. However, case studies reveal that eco-tourism, circular economy models and collaborative practices among SMEs can facilitate the achievement of SDGs. Originality/Value: This research provides valuable insights into how tourism SMEs in Sri Lanka can integrate sustainability into their operations and offers recommendations for policy makers and practitioners. It highlights the need for enhanced government support, sustainability certification and public–private partnerships to encourage SMEs to adopt eco-friendly business models. Practical Implications: The study suggests that SMEs can benefit from capacity-building programs, access to financing and strategic collaborations to overcome barriers to sustainability. Policymakers should implement clear, supportive frameworks to guide SMEs towards sustainable practices.
Keywords
Circular economy, eco-tourism, policy support, Sri Lanka, Sustainable Development Goals, tourism SMEs
Document Type
Book Chapter
Date of Publication
1-1-2026
Publication Title
Sustainable Development Goals and the Business Sector: Trends and Implementation Challenges
Publisher
Emerald
School
School of Business and Law
Copyright
subscription content
First Page
155
Last Page
176
Comments
Pathirana, M. T., Kelaniyage, T. V., & Warnakula, U. S. (2026). Sustainable tourism and SMEs: Aligning business models with SDGs in Sri Lanka. In G. Eweje & A. Sajjad (Eds.), The sustainable development goals and the business sector: Trends and implementation challenges. Emerald. https://doi.org/10.1108/978-1-83608-134-020261007