Commercial farming of seaweed Kappaphycus alvarezii has been going on in Sri Lanka since 2012, and it has been proven to be economically viable for seaweed farmers. Currently, a facility has been established at NARA, Colombo, to produce high-quality seedlings through micropropagation and there are four off-shore seed banks being maintained in dedicated locations which act as seed stock for expansion in new areas and as a replenishment material for existing farming sites. However, it is pertinent to augment the micropropagation facility and increase the number of off-shore seed banks in high-growing areas with the meticulous approach to adapt appropriate agronomic strategies according to the seasonal and geographical variation to ensure sustainable aquaculture of K. alvarezii in Sri Lanka. In the present report, the current farming practices of seed production and supply chain, phyconomical issues, immediate solutions to improve the seed vigor through proven seedling treatment methods, and potential biotechnological tools as a strategy for future to develop seeds with attributes of high growth rate, resilient to abiotic and biotic stress have been covered. In this report, an attempt was also made to address the biosecurity issues and suggestions to take necessary measures to limit the outbreak of disease.