Numerous studies have explored the intricacies of artificial intelligence (AI) in higher education, predominantly focusing on developed countries. However, there is a notable gap in examining the hindrances and untapped potential of AI implementation in the higher education sector within the South Asian Global South countries. This study aims to identify the barriers to integrating generative artificial intelligence (GenAI) in higher education and explore potential opportunities, with a specific focus on Sri Lanka as the country setting. Using a case study approach, data were gathered from various sources, including interviews and document analysis, concentrating on the largest management faculty in the country. The impediments were analyzed using an extended innovation barriers framework, covering technological, commercial, organizational, societal, and personal challenges. The findings highlight a landscape replete with obstacles. Key among them are the absence of comprehensive policies and guidelines at the university level, uncertainty about the reliability of information provided by GenAI tools, overreliance on these tools by learners, a lack of understanding and expertise among academics, and resistance to embracing technological advancements. Nonetheless, the study identifies several remedial actions that could be adopted to harness the potential of GenAI tools, particularly in South Asian Global South countries such as Sri Lanka.