Abstract:
The objective of this study is twofold. First, to examine how different socio-economic factors affect tourism and the local community in the Negombo coastline. Second, to examine how demographic factors influence residents’ perceptions on socio-economic impact of tourism. A structured questionnaire was used to collect data. OLS and ANOVA were used to analyze the data. Findings revealed that Negombo has gained from tourism as it has affected the socio-economic status of the community. However, among the existing problems overcrowding, social problems, illegal activities and pollution are creating negative impacts on the society.