Many of the buildings were destroyed in the 2004 tsunami.
The Government's Ministry of Defense CCD (Coastal Conservation Department) created what is now described as Arugam's second "Tsunami" at the end September 2011 when all beach side structures were demolished by bulldozers.
As a legacy for the work carried out by these two NGO, a local organisation, Ecowave, acting as a social business, has been established.
Ecowave is currently managing an outlet in the main street of Arugam Bay, providing market opportunities to the farmers, and offering community tourism itineraries for travelers.
Sadly, none of their projects survived the first year of operation. At the 312 km mark on the main A4 (the famous Colombo High Level Rd.
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 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 migrants, largely from Europe and Australia.While traditionally fishing has dominated the local economy, tourism has grown rapidly in the area in recent years.No notable progress can be observed locally and on close inspection, as late as New Year's Day, 2010.The main road, shown below in 2004 still looked the very same at the end of 2009.
Search for very intimidating:
This area is known as Kumana (44 kilometres (27 mi)), to be reached via the Tamil/Sinhalese settlement of Panama (Sri Lanka) (17 kilometres (11 mi)) and the Tamil shires at Okanda (32 kilometres (20 mi)).