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This chapter considers the current situation of community-based tourism (CBT) in Sri Lanka, available potentials to promote this for the future tourism industry in Sri Lanka and demand and global trends of CBT. This chapter consists of an introduction examining CBT in the global scenario. This chapter's second title discusses the potential of CBT in Sri Lanka. The third topic concerns the demand and trends of CBT in a changing economy. The fourth topic is discussing global best practices and policies for CBT development. Finally, it concludes with recommendations and suggestions for CBT development in Sri Lanka.

This case study was conducted through qualitative analysis, and data will be collected with primary and secondary data. Primary data will be collected through interviews with industry stakeholders, tourists and other relevant interviewees. In addition, it will be carried out observation on selected community-based destinations. Furthermore, the secondary data will be gathered through books, articles, research papers, websites and other materials. This chapter conducted an empirical study on CBT in Sri Lanka. It brings the values of CBT to a changing economy. Furthermore, this study identified problems, potentials, demands and trends for future tourism development by evaluating global best practices and policies.