The social entrepreneurship concept has been raising the interest of people, specifically social practitioners, policymakers, media, and scholars over the past decade. Even though the Social entrepreneurship concept is recognized to be of vital importance to the economy of any country, majorly in developing countries, the scholarly contribution has been very limited. Specifically, in Sri Lanka, the notion of Social entrepreneurship is alien to the majority of the general public and even if some entrepreneurs are indeed Social entrepreneurs, they are unaware of this fact. This article provides an extensive analysis of the problems and challenges faced by Sri Lankan social entrepreneurs as they start their businesses, as well as the anticipated challenges in the future. To identify the problems of social entrepreneurship in Sri Lanka, a literature review and in-depth interviews with Sri Lankan social entrepreneurs were conducted. Based on the results of the conducted research, a model characterizing Sri Lankan social entrepreneurs and a social business canvas model have been developed.