Abstract:
The objective of this study is to find out the negative social impacts which are faced by the local
community due to the presence of tourism sector in Panama Region of Sri Lanka, which is situated in
the South Eastern coastline of Sri Lanka. Arugambay, Kottukal, Kudakalliya, Jalaldeen Squre, and
Panama are the villages composed into Panama region. The sample size of this study is 530 members
of the local community. Fiver Likert questionnaire is used to collect the data during the years of 2017
and 2018. The analysis of data consists of Reliability Test, Preliminary Analysis (Problem of
Multicolinearity, The Kaiser-Meyer-Olkin of sampling adequacy and Bartlett’s test of Sphericity),
Factor Analysis (Factor Extraction, Communalities, Scree Plot, and Factor Rotation) by using SPSS
v.20. Use of Drugs & Changes in Food Patterns, Worry about Discipline of Children, Exploitation of
Children, and Malpractices of Women are the four factors or impacts extracted and outlined or
identified as the negative social impacts of tourism within the study region.