With the end of the war, opportunities for tourism in Sri Lanka are flourishing. As a result, the government has restored several small and medium enterprises in Sri Lanka to improve the income levels of the people and thereby to generate employment. In 2012, Centre for Poverty Analysis (CEPA) carried out a study on SMEs, focusing the Trincomalee District that produces a variety of handicrafts using Palmyra and seashells. The study aimed at giving recommendations for further improvement in production and other factors to improve their market profitability. This article highlights some of the key findings from the study.