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Arugam Bay is in the dry zone of Sri Lanka's southeastern drift of the Indian Ocean. The bay is almost of 320 kilometers (200 mi) due east of Arugam Bay, and covers an area of roughly 4 kilometers (2.5 mi) south of the market town of Pottuvil. The primary settlement in the zone, referred to locally as Ullae, is overwhelmingly Muslim, however there is a huge Tamil and Sinhala population towards the south of the town, and additionally various worldwide transients, to a great extent from Europe and Australia.

While generally angling has overwhelmed the neighborhood economy, tourism has developed quickly in the zone as of late. Tourism in Arugam Bay is overwhelmed by surf tourism, on account of a few quality breaks in the zone; however visitors are likewise pulled in by the neighborhood shorelines, tidal ponds, noteworthy sanctuaries and the adjacent Kumana National Park.

The Arugam Bay territory is known for its quality surf breaks. The 'Main Point' is one of the main surfing areas of the Bay found towards the south of the sound. This is a correct hand point break, with a stone/reef base, and has various areas with incidental barrels. Different breaks in the zone incorporate Whiskey Point and Pottuvil Point toward the north, and Elephant Rock, Peanut Farm and Okanda toward the south. These breaks have pulled in a constant flow of worldwide travelers for quite a few years. Arugam Bay has a decent neighborhood surf scene and is home to some of Sri Lanka's most gifted surfers and lately surfers from Arugam Bay have ruled national competitions. The first international surfing competition in this bay was held in mid 2010.

Besides Surf Breaks, there are many other tourist’s attraction and visiting spots in the Bay as well. The Kumana National park which is adjacent to the bay is one of the main tourist’s attraction places of the entire area. The Kumana National Park was known as the Yala East National Park and was named Kumana National park in September 2005. Besides National park, the tidal ponds and sanctuaries present in the place also catches the tourist’s eyes.