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The Sri Lanka Tourism Development Authority (SLTDA) said it had launched an inquiry into the incident where a Pangolin was found inside a freezer at a restaurant in Kollupitiya.
In a statement, the SLTDA said the license of the restaurant would be cancelled, if found guilty.
"We will not hesitate to take action against tourism service providers who fail to adhere to the country's legal and regulatory framework. With the cancellation of the license, the restaurant would no longer be considered a legal tourism service provider in Sri Lanka," it said.
The SLTDA said, in such an event, it would also request the Department of Immigration and Emigration to cancel the visa of the Chinese national who functioned as the restaurant operator.
A similar request would be made to the Excise Department to cancel its liquor license.
The restaurant in question, 'Tong Ni Roast Meet', is located at Walukarama Mawatha, Colombo o3.
"Our intention is to ensure that all registered tourism industry service providers adopt highest professional processes. We will expedite our screening processes with the establishment of the Enforcement Unit under the SLTDA, " the statement said.
The Police found the Pangolin inside a freezer of the restaurant when they conducted an inspection following a tip-off, last week.