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.