Developing countries emerging from protracted civil wars and conflicts very often experience post-conflict tourism booms. Sri Lanka is no exception. The end of conflict has offered new opportunities, particularly in the tourism sector. In order to make use of these new opportunities, the previous government launched the “Tourism Development Strategy 2011–2016” by recognizing the key role of tourism that tourism can play in post-conflict development. It has been followed up by the current government of Sri Lanka by launching its own “Sri Lanka Tourism Strategic Plan 2017–2020”. The purpose of this chapter is to examine the nature of the post-conflict tourism boom and explore new opportunities that have emerged in terms of creating employment opportunities and reducing regional disparities. Furthermore, the chapter attempts to examine the impact of the tourism boom on the overall economy and to highlight how Sri Lanka has given priority to developing the tourism sector and positioning it as a key growth pillar in the economy. This chapter also demonstrates that tourism is not a “silver bullet” in addressing all economic ills in the Sri Lankan economy, despite the optimism about the development of the tourism sector to create further opportunities. The use of tourism as a tool to stimulate the economy should be synchronized with a raft of other policies such as improved transport infrastructure facilities, sound macroeconomic management, eliminating corruption and inefficiencies in government institutions, and reducing barriers to trade and FDI.