For centuries, oceans have supported human populations by providing food, energy, biodiversity, and recreation, thanks to their natural ability to regenerate. Harnessing the oceans without depleting their potential for future generation, and utilizing resources economically as part of a strategic approach to the global economy, defines what is now referred to as the ‘Blue Economy’ (BE). BE models enhance the potential of sectors such as fisheries, aquaculture, biotechnology, tourism, transport, and energy production. An appropriate regulatory framework for managing the sustainability of coastal zones through these models will be crucial for states that rely on the oceans. Small Island Developing States (SIDS) pioneered the global drive toward BE. Sri Lanka, strategically located at the heart of the Indian Ocean’s maritime trade, has emerged as a leading nation in capitalizing on this potential. However, despite its advantageous geographic and territorial position, Sri Lanka faces substantial challenges in sustainably harnessing its marine resources. These include forging robust regional agreements for marine conservation, establishing consistent revenue streams from ocean-based activities, and securing comprehensive government and public support. Consequently, this chapter aims to examine the existing literature on the potential of BE models in Less Developed Countries (LDCs), Small Island Developing States (SIDS), and developing nations such as Sri Lanka. The goal is to identify opportunities for further expanding the benefits of the Blue Economy in coastal states through the development of innovative approaches. This review will provide a global perspective on the demands, opportunities, and challenges associated with maximizing the potential of BE approaches. By identifying limitations, this context will contribute to a deeper understanding of the factors hindering the successful implementation of BE initiatives.