I successfully played a SWF file locally (by copying it in the SD memory) on a Dell Streak through this link:
file://sdcard/[filename].swf
However, my friend could not play on Xoom (Android 3.0 Honeycomb) through the same link. Then I figured out that there was also a same issue with Acer Iconia Tab A500, which also runs on Android 3.0 Honeycomb.
Then a flash developer came to my help. He converted the SWF file into the APK format that could be played on Xoom.