Human-induced soil erosion is one of the most significant types of land degradation in the Wee Oya watershed in Sri Lanka. The high intensity of rainfall, steep slopes, and inappropriate land use practices are strongly associated with soil erosion in the area. The prime aim of the study was to estimate soil erosion in the watershed and its seven sub-watersheds using the Integrated Valuation of Ecosystem Services and Tradeoffs (InVEST), Sediment Delivery Ratio (SDR) model. Furthermore, a comprehensive household (HH) questionnaire survey (n=30) was conducted to ascertain key socio-economic information such as the farmer’s age, gender, education level, the extent of land for cultivation, and the degree of practicing soil and water conservation (SWC) measures. Then, the multiple regression analysis was applied to determine the significant socio-economic determinants of erosion in the watershed. The results of the assessment disclosed that the present average annual rate of human-induced soil erosion of the watershed is 167 t/ha/yr. Moreover, the most significant (p<0.05) socio-economic determinants of the soil erosion of the study area are the farmer’s age and family size. Furthermore, the study revealed that more than 50% of the farmers do have not a substantial perception of existing government policies’ implications concerning human-induced soil erosion. Finally, the outcome of the assessment has highlighted the necessity of human intervention for effective SWC measures in the study area.