Arugam Bay is a bay situated on the Indian Ocean in the dry zone of Sri Lanka's southeast coast. The bay is located 320 kilometres (200 mi) due east of Colombo, and approximately 4 kilometres (2.5 mi) south of the market town of Pottuvil. The main settlement in the area, known locally as Ullae, is predominantly Muslim, however there is a significant Tamil and Sinhala population to the south of the village, as well as a number of international migrants, largely from Europe and Australia. While traditionally fishing has dominated the local economy, tourism has grown rapidly in the area in recent years. Tourism in Arugam Bay is dominated by surf tourism, thanks to several quality breaks in the area, however tourists are also attracted by the local beaches, lagoons, historic temples and the nearby Kumana National Park.
The Arugam Bay area is home to a number of quality surf breaks, the most popular of which being 'Main Point' located towards the south of the bay. This is a right hand point break, with a rock/reef bottom, and has a number of sections with occasional barrels. Other breaks in the area include Whiskey Point and Pottuvil Point to the north, and Elephant Rock, Peanut Farm and Okanda to the south. These breaks have attracted a steady stream of international tourists for several decades. Arugam Bay has a good local surf scene and is home to some of Sri Lanka's most talented surfers and in recent years surfers from Arugam Bay have dominated national competitions. In mid-2010 the Association of Surfing Professionals hosted its first international surf contest in the Bay. The winner of such was Australian Julian Wilson . ASP repeated their contest tour in 2011 added a women's competition to the men's long board championship at Arugam Bay.