Panama Beach is a long, wild stretch of golden sand 5 kilometers south of Arugam Bay. Unlike the main surf beach, Panama sees almost no visitors. There are no sunbeds, no restaurants, and no touts. Just sand, dunes, and the Indian Ocean. It sits in the Panama area, close to other sights worth visiting. Free entry and 1-2 hours gives you a thorough visit.
What It Is
A kilometre-long beach backed by sand dunes with a lagoon on the other side. The sand is golden and coarse, the waves can be big, and the only sounds are wind and surf. A handful of fishing boats pull up in the mornings but otherwise you will likely have the place to yourself.
Why Visit
This is the east coast beach experience without any of the tourist infrastructure. If Arugam Bay's main strip feels too busy, Panama is the antidote. The dunes are worth climbing for the view over the lagoon, and the sunsets here are exceptional. Combine it with Elephant Rock and Kudumbigala Monastery for a full day exploring south of town.



