This research investigates the path from service quality dimensions to customer satisfaction and loyalty in supermarket customers of Sri Lanka. The expansion in the industry by international players coming to Sri Lanka and the competition prevailing in the industry emphasize the importance of this research. To certain extent this study contributes to fill the gap that exists due to the lack of knowledge about the path from service quality dimensions to customer loyalty in the country. Service quality dimensions identified through the literature survey namely Empathy, Reliability, Responsiveness, Tangibility and Assurance. The objective of this research is to identify the impact of service quality dimensions to customer satisfaction and then to customer loyalty, and to highlight the barriers to customer satisfaction & loyalty if any. Sample of this study consists of 311 supermarket customers in Colombo city and suburb. Data were collected through e-questionnaire by using Google Forms for the time period January 2018 to October 2018. The validity types concerned are the content validity and construct validity as the research constructs were measured using set of variables within each of them. The reliability of the scale measurements was tested for internal consistence using Cronbach’s Alpha and Composite Reliability. Hypotheses were tested using Structural Equation Model.