A well-established year-around dried fish production process is practiced at Negombo, the west coast of Sri Lanka, and this study evaluates the present status of this industry using the data collected from February to December 2017. There are forty-two dried fish processing centres at Negombo sea street area, providing livelihood opportunities for ~320 employees. Eighteen fish species belonging to 9 families are used in dried fish production and species belonging to the family Carangidae made the highest percentage contribution (21.6%), followed by the Clupeidae (21.4%), and Scombridae (21.4%). The results of the Quality Index (QI)Method revealed that both high-quality and very low-quality fish are used in dried fish production, and the overall QI of Katsuwonus pelamis, Euthynnus affinis, Decapterus macarellus, and Elagatis bipinnulata ranged from 15–16. Effects of drying on proximate composition were assessed, and significantly higher crude protein, content was recorded in dried fish than in fresh fish (p<0.05, t-test). Drying has also resulted in a significant increase in crude fat content in all these species except for Canthidermis maculatus (p<0.05; t test). De-heading and gutting, washing, salting, rewashing, drying, and packing were the major steps in the dried fish production process. Although the total coliform was reported in water samples used in the dried fish processing centres, it was not encountered in any of the dried fish samples. The dried fish value chain mainly consisted of fishermen, buyers, processors, sellers, and consumers, and upgrading of products, processes, and functions along the value chain was suggested to produce better quality dried fish and increase the profit margins of value chain actors.