Arugam Bay , known locally as "Arugam Kudah", is situated on the Indian Ocean in the dry zone of Sri Lanka's southeast coast, and a historic settlement of the ancient Batticaloa Territory (Mattakallappu Desam). The bay is located 117 kilometres (73 mi) south of Batticaloa, 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 Sri Lankan Tamil and Sinhala population to the south of the village, as well as a number of international expatriates, largely from Europe and Australia. While traditionally fishing has dominated the local economy, tourism has grown rapidly in the area in recent years. Arugam Kudah's literal Tamil translation is "Bay of Cynodon dactylon". 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.

Nilaveli (Tamil: நிலாவெளி, romanized: Nilāveḷi; Sinhala: නිල්වැල්ල, romanized: Nilvælla) is a coastal resort town and suburb of the Trincomalee District, Sri Lanka located 16 km northwest of the city of Trincomalee. A historically popular Tamil village and tourist destination of the district alongside the nearby Uppuveli, the numbers of visitors declined following the 2004 Indian Ocean tsunami and Sri Lankan Civil War, but have risen again since 2010. Pigeon Island National Park, one of the two marine national parks of the region is situated 1 km off the coast of Nilaveli, its many species of vegetation, coral and reef fish contributing to Nilaveli's rich biodiversity.