The coastal waters of Sri Lanka have well-developed reefs; the majority are made up of sandstone and rocky habitats that form extensive reefs around the island. The greatest extent of true coral reefs is located in the Gulf of Mannar region off the northwestern coast of the island. For cent­ uries coastal people have been dependent on the harvest of reef fish and other resources. Corals have been utilized in the production of lime that is used in the construction industry. The exports of spiny lobsters, sea cucumber and ornamental reef fish contribute significantly to the foreign- exchange earnings of the country. Tourism has also benefited from the aesthetic value of coral reefs. However, due to unmanaged resource utilization, reef habitats are being depleted at an alarming rate. Research has revealed that the status of coastal reefs is declining steadily due to various human activities such as destructive fishing, coral mining, overharvesting, unplanned development, and sedimentation due to land-use patterns. Although laws have been introduced to protect reefs, few have been implemented due to inadequate institutional cooperation and political considerations. There is also a lack of awareness and concern among the general public. This paper reviews the status of coastal reefs in Sri Lanka; major disturbance factors are described and management issues are discussed. Research conducted on coral reefs in Sri Lanka is also reviewed.