The development of construction industry should be aligned within the legal boundaries of a country. Generally, complications in the environmental and physical planning directly impact the construction activities and triggered to disputes and conflicts. Thus, the legal considerations related to Environmental and Physical Planning Laws may directly affect the construction industry. Henceforth, this research aims to evaluate the applicability of Environmental and Physical Planning Law to the construc-tion industry in Sri Lanka. Accordingly, the mixed research ap-proach was selected by steering both questionnaire survey and experts’ opinion survey. The findings reveal that some aspects of the existing Environmental and Physical Planning Law areas should be amended in order to meet current industry challenges. Moreover, there are some provisions in the existing law which have failed due to the improper implementation process. Therefore, the research manifests that the aforementioned laws should be properly monitored and amended according to the industry requirements.