The major issues in the city are the frequent accidents in the firecracker factories and the high level of child labour.

AJ and Hatsun Indoor Stadium has a coaching center for badminton and is the major sporting venue of the city.

Sivakasi is locally administered by a municipal corporation which covers an area of 6.8 km2 (2.6 sq mi).

Between 1428 and 1460, a Pandya king Harikesari Parakkirama Pandian ruled the southern part of Madurai region (comprising modern-day Sivakasi and its surroundings).

[5] Nayak rule ended in 1736 and Madurai was repeatedly captured several times by Chanda Sahib (1740–1754), Arcot Nawab and Muhammed Yusuf Khan (1725–1764) in the middle of the 18th century.

[6] In 1801, Madurai came under the direct control of the British East India Company and was annexed to the Madras Presidency.

A total of 22 people were killed, as many as 800 houses and the Big Chariot in the center of the city (used by the temple during festivals) were burnt during the riots.

The city is located in Virudhunagar district of the South Indian state, Tamil Nadu, at a distance of 74 km (46 mi) from Madurai.

The bulk of the rainfall is received during the North East monsoon in the months of October, November and December.

The wards along the Virudhunagar, Sattur, Srivilliputhur and Vembakottai corridors have registered increased commercial and residential activity.

[23] Majority of the residents are engaged in the secondary sector involving match works, fireworks, and printing industry.

The agricultural output of the city is limited, due to the lack of favourable geographical and climatic conditions.

[29] The functions of the municipality are devolved into six departments: general administration/personnel, Engineering, Revenue, Public Health, city planning and Information Technology (IT).

[27] During the 1957 elections, Sivakasi was a part of Srivilliputhur constituency and was held by the Indian National Congress and an independent after the by-elections.

[28] Law and order in the city are maintained by the Sivakasi subdivision of the Tamil Nadu Police headed by a Deputy Superintendent.

[52] Water supply is provided by the Sivakasi Municipality from the Vaippar river through eight reservoirs and six feeders located in various parts of the city.

In 2020 there are around 1070 registered firecracker manufacturing companies in sivakasi and 8 lakh (800,000) people were directly and indirectly employed by the industry.

In 2011, the combined estimated turnover of the firecracker, matchbox making and printing industry in the city was around ₹20 billion (US$230 million).

The raw materials for these industries were procured from Sattur earlier but were discontinued due to the high power and production cost.

In 2012, all the industries suffered 15–20% production loss due to power shortage and escalating labor cost.

[65] A similar fire accident and blast in a private unit in September 2012 killed 40 people and injured 38 others.

[66] The common reasons cited for the accidents are inadequate training of workers and supervisors involved in different stages of production and marketing of firecracker items.

[63] Other reasons are found to be overstocking of explosives, raw material and finished goods, and employment of workers in excess of the permitted strength.

[71] The children in these industries suffered from a backache, neckache, tuberculosis, malnutrition, gastrointestinal disorders, dermatitis, respiratory disorders, over-exhaustion, burn injuries and water-borne diseases due to exposure to harmful chemicals in the work environment.

The central government appointed a one-man committee under Harbans Singh in 1978, who reported abolishing child labour would seriously impact the economy of the region.

[63][72] The National Policy on child labour was formulated by the central government in August 1987, aiming at the rehabilitation of children withdrawn from these factories.

[74] The Supreme Court of India, in a judgement, ruled in December 1996 indicating provisions for preventing child labour like compensation for the child employed, employment to the adult members of the family and contribution to the corpus fund by the state government.

[79] The Tamil Nadu State Transport Corporation operates daily services connecting various cities to Sivakasi.

[81] The major intercity bus routes from the city are to cities like Madurai, Chennai, Erode, Karur, Coimbatore, Karaikudi, Dindigul, Trichy, Ramanathapuram, Thanjavur, Sankarankovil, Sengottai, Rajapalayam, Tenkasi, Kovilpatti, Tiruppur, Dharapuram, Oddanchatram, Thoothukudi, Tiruchendur, Nagercoil and Tirunelveli.

[83] AJ Indoor Stadium on Velayutham Road, a coaching center for badminton, table tennis, and basketball.