Social media plays as an advertising mechanism an integral part in enabling business organisations to reach new horisons in the modern world. Inspired by the rapid penetration of clienteles made possible by social media platforms, organisations across the globe embark on exploring opportunities available for them to strengthen their brand relationships and promote their goods and services in new territories. Against this background, this paper aims to identify the impact of social media on the marketing aspect of small and medium-scale enterprises (SMEs) in Sri Lanka. It involves conducting empirical research to test the hypothesised relationships between SMEs and social media based on the conceptual framework developed after reviewing the relevant literature. The data were gathered by distributing a structured questionnaire among a sample of 101 respondents from the Western Province of Sri Lanka who operate their businesses along with an established social media presence. In the course of analysing the data, the hypotheses were tested using the method of multiple regression analysis. The results reveal that the incorporation of social media in advertising helps SMEs boost their awareness of customer perspectives and strengthen their customer relations and thereby having a significant impact on their business performance. The study also explains the implications and benefits of social media in developing the marketing aspect of SMEs.