Abstract: Working capital is one of the most significant credit needs in the fisheries sector. Fisher-folks mostly use informal credit sources to fulfill their credit needs. Nevertheless, there is an urgent need and desire of the government to make reasonably priced credit available at local level for all fisher-folk communities. Therefore, prime objectives of this paper was to examine the types of credit sources available for fisher-folk in Tangalle while identifying the barriers for formal credit sources and to suggest mitigation measures to overcome the barriers. A questionnaire survey was conducted for fisher-folk in Tangalle. A convince sample of fifty members was selected. Data were analyzed using SPSS 13.0.