_____________________________________________________________________________________________________ *Corresponding author: Email: vilani@sjp.ac.lk; Asian Journal of Education and Social Studies 15(1): 1-15, 2021; Article no.AJESS.64692 ISSN: 2581-6268 Knowledge Management Practices towards Competitive Advantage: Study on SMEs in Sri Lanka Himasha Erandi 1 and Vilani Sachitra 1* 1 Department of Commerce, University of Sri Jayewardenepura, Gangodawila, Sri Lanka. Authors’ contributions This work was carried out in collaboration between both authors. Author HE designed the study, performed the statistical analysis and wrote the protocol. Author VS managed the analyses of the study and wrote the first draft of the manuscript. Both authors read and approved the final manuscript. Article Information DOI: 10.9734/AJESS/2021/v15i130365 Editor(s): (1) Dr. Nasser Mustapha, University of the West Indies, Trinidad and Tobago. Reviewers: (1) Sk Mamun Mostofa, University of Dhaka, Bangladesh. (2) Akash Kumar Singh, Gandhi Faiz-E-Aam P.G. College, India. (3) Rorim Panday, Bhayangkara Jakarta Raya University, Indonesia. Complete Peer review History: http://www.sdiarticle4.com/review-history/64692 Received 16 November 2020 Accepted 22 January 2021 Published 09 February 2021 ABSTRACT Purpose: Knowledge Management (KM) can be defined as capturing, distributing, and effectively using knowledge. Organizations become more knowledge intensive and they are hiring “minds” more than “hands”. The organization practice has shown that knowledge, when properly used and leveraged, could drive it to become more innovative and thus, more competitive. The investments on intangible resources and the creation of capabilities made by the SMEs are quite problematic. The main reason of conducting this study is to examine the effects of Knowledge Management Practices (KMP) to gain competitive advantage (CA) of SMEs in Sri Lanka. Methods: Explanatory research approach was utilized followed with quantitative research method. Knowledge Creation, Knowledge Validation, Knowledge Presentation, Knowledge Distribution and Knowledge Application were considered as Knowledge Management Practices. The study was conducted with 32 SMEs in Colombo District. Findings: According to the overall assessment of Knowledge Management Practices in SMEs, 12.5 percent of respondents were never heard about Knowledge Management while 6.3 percent were thinking that it is just a management activity that organizations are already engaging with. Further, 34.4 percent opined that Knowledge Management is a strategic part of the business while 15.6 percent stated Knowledge Management is not existence at their organizations. Fortunately, Original Research Article