4km away from Arugam Bay, you will find a hidden gold mine for wildlife: the Pottuvil Lagoon. You will get to cruise along the lagoon, which is 200 acres in size, in either a boat or a canoe and the whole safari will last about 2-2 ½ hours. The lagoon is one of the most pristine places on the island; the murky greenish-brown water looks misleadingly deep when in fact it is actually quite shallow, but the dark water is beautiful as it becomes a mirror of sorts to the clear blue skies.
A lush green mangrove forest surrounds Pottuvil lagoon, and it is a common sight to see mischievous Sri Lanka Macaque Monkeys jumping from tree to tree. Another relatively common sight is seeing large crocodiles basking in the sun on the banks of the lagoon or on nearby rocks, looking deceivingly calm, and to see one of these animals is exhilarating, to say the least. But the best-kept secret about the lagoon is that it is a fantastic place to spot elephants; many elephants come here in the evening as a way to cool off and you can watch them frolic in the water from a safe distance.