Microplastics (MPs) have become one of the evilest environmental pollutants worldwide. Due to its minute size and omnipresence, its potential to impact environmental systems is immeasurable. Sri Lanka reported the first evidence of MP contamination in 2017 from beach sand, and thenceforth numerous studies have been looked at MP contamination, from sources to potential impacts. This review is derived from information collected from a systematic literature survey covering more than fifty peer-reviewed authentic publications. The majority of MP studies have focused on marine environments in particular beach sand, surface water, sediment, and residing organisms including finfish and shellfish. Other studies have been conducted in rivers, estuaries, lagoons, and slatterns as well as cosmetics, personal care products, bottled water, open-air, and lichens have provided invaluable insight into MP contamination in the Sri Lankan environment. In 2021, the worst maritime disaster in Sri Lankan history encountered in containership MV X-Press Pearl significantly accelerated MP contamination in Sri Lankan coastal waters due to the spillage of tons of virgin plastic pellets together with a myriad of plastic products. Due to irresponsible littering behavior of people, open-dumping of unsorted waste, and poor waste-collecting and recycling mechanisms of local authorities a larger fraction of waste find its way to coastal waters. Improving waste-collecting facilities, discouraging use and manufacture of plastics and products made of non-degradable materials specifically single-use plastics, and encouraging the 4R (Refuse-Reduce- Reuse-Recycle) concept can be best practices to curb the harmful impacts of MP pollution in Sri Lanka. This work will discuss an overview of the present level of understanding of MP contamination in Sri Lanka, impacts of point sources such as the MV X-Press Pearl disaster, institutional involvement towards plastic-waste mitigation, regulation, challenges, and way forward.