Homestay has been a significant topic in the contemporary tourism research. The demand side or motivation, perception and satisfaction of visitors have often been investigated. This paper investigate the supply perspective of homestay accommodation in the context of Sri Lanka. Qualitative approach was selected supported by ethnographic interviews. The population being all homestay operators in Sri Lanka, a sample of twenty seven homestay suppliers were interviewed all over the country representing nine homestay zones. Transcriptions were coded, analysed and structured into qualitative narrations. Source of income, business prospect, persuasion and experience, appeal of the area, personal appeal and availability of resources motivated homestay supply. The weaknesses of the exiting product, socio-cultural issues, and external disturbances, unethical behaviour of guests, guest complaints and poor capability of operators were of significant issues in homestay operations. Planning, marketing, research, increase customer service and sufficient allocation can ensure socio-economic advancement from homestay accommodation.