Sri Lanka had the opportunity to become one of the best tourism countries (TCs) in Asia immediately after independence in 1948. However, it missed opportunities on a number of occasions due to inappropriate economic policies, continuous political violence and war. Between 1983 and May 2009 the Sri Lankan tourism sector was seriously affected by nearly three decades of separatist war. Immediately after the end of the war, tourism in Sri Lanka bounced back and it has now become one of the main engines of economic growth in post-war Sri Lanka. In this article, a historical analysis has been undertaken to demonstrate how, despite its large tourism potential, Sri Lanka missed opportunities and fell far behind its Asian counterparts on a number of occasions. This article demonstrates that opportunities exist for the Sri Lankan tourism sector to play a vital role in the current post-war inclusive development strategy in terms of generating much needed foreign exchange, poverty alleviation via employment generation, accelerat- ing economic growth and uplifting living standards of all Sri Lankans.