Panama Lagoon: Sri Lanka’s Wild and Peaceful Hideaway
Panama Lagoon is where wild nature and complete peace meet whether your activity is paddling across calm waters at sunrise, observing elephants graze close to the shore.

Nestled between the Kumana National Park and the surf town of Arugam Bay, Panama Lagoon (pronounced Paanama) is a peaceful stretch of water that seems far from everything.
This kind of place doesn't show up on every travel brochure, but once you're there, as a flock of storks lifts off into the heavens you'll wonder why more people aren't visiting or talking about it.
Panama Lagoon is where wild nature and complete peace meet whether your activity is paddling across calm waters at sunrise, observing elephants graze close to the shore, or just sitting and letting the world slow down.
Why Visit Panama Lagoon?
If you want to get away from the buzzing crowds and into a more unspoiled side of Sri Lanka's east coast, Panama Lagoon is ideal. It's not flimsy. Neither large hotels nor lines of sun loungers exist. Rather, you will find mangroves, bird calls, and open sky—a place that seems real and unvarnished. This is a stop you really shouldn't miss if you enjoy kayaking, birdwatching, or simply being close to nature.
Things to Do Around Panama Lagoon
Take a Canoe or Kayak Ride at Sunrise or Sunset
One cannot experience the lagoon any better than from the water itself. Local guides will gently paddle across the calm waters as the day starts or finishes using classic canoes or kayaks. You will pass water buffalo, herons, cormorants, and perhaps even crocodiles (don't worry, they are shy). The soft rustling of the reeds and the reflections of the heavens on the still water define the kind of peace you carry long after you have left.
Spot Wildlife Along the Shore
Some of the richest wilderness on the island runs around here. Elephants feeding close to the lagoon's edge is not unusual, particularly at dawn or sunset. Branches breaking and the odd low trumpet in the distance could even be heard before you see them.
Birdwatching Paradise
Any lover of birds would dream of Panama Lagoon. Everything from painted storks and egrets to kingfishers and Brahminy kites is seen during the migratory season. If you have binoculars, bring them; else, let your guide point them out as you oar through the calm lagoon waters.
Walk the Village Trails
The small neighbbouring village of Panamais peaceful and friendly. Wander leisurely across small tracks leading to secret views of the lagoon, forest paths, and paddy fields. It's a fantastic way to observe the way people in the area live—close to the natural surroundings, slow-moving, firmly anchored in the roots.
When to Visit
From April to October, during the dry season, is the best time to visit Panama Lagoon. While evenings are golden and peaceful—perfect for photography, animal spotting, and boat trips—the mornings are cool and misty. This makes a great excursion if you want something slower and more grounded when you are visiting Arugam Bay for the surf.
Getting There
About a 15-minute drive from Arugam Bay, along the picturesque coastal road toward Kumana, is Panama Lagoon. Most guesthouses can assist you with travel and a local guide or boat trip; tuk-tuks are easy to rent. It's also on the path to Kudumbigala Monastery and Kumana National Park, so you might simply combine it with a day of spiritual and wild side exploration of the region.
Travel Tips
- Go early or late: Sunrise and sunset are the most magical times to be on the lagoon.
- Bring insect repellent: Especially around the mangroves.
- Wear light, breathable clothes: And maybe pack a hat—the sun can be strong.
- Support local guides: Many are from the village and know the lagoon like the back of their hand.
- Stay quiet: The less noise, the more you’ll see.
Final Thoughts
Panama Lagoon is not about adventure in the quick-paced sense. It's about slowing down, tuning in, and gently seeing the wonders of the natural world. It's ideal for single visitors, outdoor enthusiasts, or anyone looking to explore a side of Sri Lanka still wild and wonderfully understudied. Thus, take the turn to Panama if you are traveling east coast and wish to stray somewhat from the usual route.