The present study elucidates the socio-ecological status of the marine ornamental reef fish (MORF) fishery in Trincomalee, Sri Lanka, through strategic SWOT analysis. Data were collected through interviews with full-time fishers (n = 49) fishing at Pulmodai, Sampur, and Kuchchaweli reef sites, focus group discussions (n = 3), and participant observations during 2019–2020. Data gathered in-situ were further investigated in detail, analyzed, and grouped into attributes of SWOT analysis. Results revealed higher fishing income (90–900 USD) by 91.84% of respondents as the major strength of the fishery, followed by low production costs (24–240 USD), a low labor force, and others. Seasonality of the fishery, multiple ownership of reefs, and the limited number of fishing hours (4-6 hrs.) were the main weaknesses identified in the system. High global demand, the fish-to-order concept, and the intervention of local buyers were the major opportunities for the fishery. Long market chains, bopyrid isopod infection on Pacific cleaner shrimp, and poor monitoring systems were the major threats to the industry. The MORF fishery in Trincomalee, Sri Lanka, results in higher living standards for fisher communities and empowers them. The present study has policy implications for the MORF fishery and the long-term sustainability of the industry.