This paper is to evaluate the impact of COVID-19 on the Sri Lankan tourism industry and to understand the issues and challenges faced by the people who depend on the tourism sector. The study is going to cover how the imposed international travel ban affect the tourism industry mainly apart from that the study discusses the short and long-term problems faced by the people in the tourism industry and examine the practicality of the health rules to be followed when returning to international travelers. The present paper was review based and content analyses was made to focus on how the collapse of the tourism industry affected the Sri Lankan economy and compare how the collapse of the tourism industry affected small businesses such as travel vendors, small hoteliers restaurant, owners, and large scale tourism hoteliers.