Lobsters, highest value commercial fishery of Sri Lankan coastal water ranked as second highest export earner and major fishery for artisanal fishers. Global warming leading to climate change and sea level rise, impacting on coastal ecosystem health, livelihoods and the increased frequency and severity of natural hazards crippled the lobster fishery of the island nation. Study focused to identify the vulnerability of lobster fishery to climate change impacts, to determine the impacts of climate change, and to identify community-based adaptation measures. South and West-coast lobster fishery were considered and filed survey based on interviewer administrated questionnaire (n = 60) was conducted with randomly selected fishermen, collectors and exporters. In-depth interviews were conducted with key informants including fisheries inspectors, district fisheries officers, exporters, scientists, customs officials and hoteliers. The results revealed that illegal, unreported and unregulated fishing significantly affected on the lobster fishery, leading spiny lobsters are on verge of extinction. Artisanal fishers were vulnerable to climate change impacts on available fishery resources, changes in lobster diversity, reduce the abundance of some species, and decrease volume of catches. Capacity building of artisanal lobster fishers through climate literacy, informal education programmers and community-based arrangements of resource management were identified as potential remedial measures along with responsible fishing, strengthen law enforcement and market-based instruments for closed fishing seasons.