Best Places To Stay In Arugam Bay {Sri Lanka} 2025
- Kate Colliety
- 3 days ago
- 10 min read
Updated: 16 hours ago
If you’re wondering where to stay in Arugam Bay, you’ve come to the right place. This laid-back surf town nestled on the south-east coast of Sri Lanka has an abundance of hostels, boutique hotels and beachfront resorts to choose from.
The town is most famous for its surf, with Arugam Bay Beach offering rides up to 600 meters, it’s the most powerful wave in the area and draws surfers from all over the world. If you’re not into surfing, then there are plenty of non-surfer things to do in Arugam Bay, one of our favourite was the wildlife spotting. Just a stone throw away from the misty Indian Ocean is thick, dense jungle separated by marshy lagoons where you can spot elephants grazing, buffalo relaxing and crocodiles cruising by. Some of Arugam Bay’s best places to stay overlook this wild and untamed nature.
The blend of raw wildlife combined with the relaxed vibes and friendly locals creates a special corner of Sri Lanka. This blog is a quick and concise, no nonsense guide about the best places to stay in Arugam Bay, whether you’re on a tight backpacker budget, travelling as a couple, or looking for some luxury. After spending just over two weeks in this sleepy surf town, we fell in love with it and there are some hidden gem accommodations to discover below!
Contents
The Best Areas To Stay in Arugam Bay
First let's start with what area you’ll want to stay in depending on what traveller you are:
Arugam Bay Beach - The Best Area For Most Travellers
This is the heart of Arugam Bay town and where most of the action happens. Home to both baby and main point surf spots, it attracts travellers who are looking to surf and party. Arugam Bay Beach area is also home to the souvenir shops & best restaurants in Arugam Bay. Whether you’re here to surf, relax or meet other travellers, this is the most popular and convenient place to stay.
Arugam Bay Town Area - Budget Couples
Just a little further back from the beach, the Arugam Bay town area offers great value for couples travelling on a budget. Accommodation here should usually be more affordable and quieter, away from the beachfront noise. It’s a 10-20 minute walk to the surf and main strip depending on how far out you are, this is where we chose to stay due to the peaceful surroundings and cheaper prices.
Peanut Farm Beach - Surf Camp
One of the best surf spots in the area is Peanut Farm Beach, a secluded long strip of golden sand separating the dense Sri Lankan jungle and the Indian Ocean. There’s no facilities on the beach except for one Surf Camp, ideal for those looking to level up their surf and sleep just meters from the surf.
Pottuvil - Local Town
Pottuvil is the local town just next to Arugam Bay, you’ll reach it as soon as you cross the bridge. Accommodation here will be considerably cheaper and will be a much more local experience but far from the action, so you’ll need a rental scooter or Tuktuk. Whiskey Point is also a popular spot with some fancier hotels and resorts in the peace and quiet.
Discover The Top Things To Do In Sri Lanka!
While driving around the country for 2-months, we created a Google Pinned Map with all the places we visited and were recommended in Sri Lanka. Grab your Pinned Map today and start planning your Sri Lankan adventure! Don’t miss out...click here to view for free!
Best Places To Stay Arugam Bay Beach
Budget Accommodation Arugam Bay $
We’re starting off cheap! For less than $10 a night Jama’s will give you the perfect base to explore the town as it’s close to main point. It’s also a popular spot with travellers for their homemade rice & curry.
Spacious rooms which are kept clean and well maintained, there’s also A/C available to help escape the heat of the day. The Hangover Hostel is a great opportunity for solo travellers who are looking to meet others. This is Arugam Bay’s best place to stay for social backpackers on a budget. It’s right in the center of town close to the beach, so you’re near the best restaurants and cafes.
Keeping it cheap and as close to Arugam Bay Beach as possible, Fin’s doubles as a hostel and a restaurant/bar. They serve great cocktails and food, and have spacious hostel rooms, a stone’s throw away from the beach. The rooms are well maintained and clean with extra small aesthetic touches, overall a great place to stay in Arugam Bay.
Located literally on the corner of main point, if you stay at this Arugam Bay Surf Resort you’ll have a view of the waves from your own private beach hut. We stopped off at the cafe for a coffee and the food smelt great. The surf camp is a short walk into town but the real beauty of this place is the two minute commute to the lineup! If you surf, this is the best place to stay in Arugam Bay, and if you don’t, it's still pretty cool.
Mid-Range Hotels in Arugam Bay $$
These double rooms sit right on the beach and are a great place to stay in Arugam Bay Beach if you’re looking for a private room. The location is in a busy spot and you’ll most likely hear the town come to life every morning while watching the fishermen coming back from a morning fish. You can even see baby point surf spot from the rooftop!
You’ll notice a theme with these accommodations and best places to stay in Arugam Bay Beach, ocean vibes, beach view! You’re paying a premium for the awesome location, ocean vibe has nice private double rooms right on the beach with the best restaurants in walking distance. Their showers are cold, so something to consider, but the cold water is not as bad in the tropical heat.
We’re climbing in price and in quality, Bay Vista Hotel is a great choice for families or luxury couples looking to relax and escape from the chaos that Sri Lanka can sometimes be. The rooms are clean, fresh and comfortable, which surprisingly can be hard to find in Asia. It doesn’t have a swimming pool, but it's located right on the beachfront so you can go for a dip every morning. Great food served in the restaurant and a great choice for a place to stay in Arugam Bay.
Luxury Hotels in Arugam Bay Beach $$
With a nice pool and set in a relaxed atmosphere, the spice trail is a relaxed getaway from the buses and traffic just nearby. They have clean and well maintained facilities, with A/C which is much appreciated in the midday heat of Sri Lanka. This boutique hotel also has a restaurant on-site with cocktails and free breakfast.
Arugam Bay Town - Best For Tourists on a Budget
Budget Places To Stay in Arugam Bay $
We opted to stay in the private room with a/c at Little Fairy Home B&B, a small guesthouse run by a local Sam who went above and beyond to help us with anything we needed. It has a small outside kitchen with very basic amenities but meant we could make some pasta for lunch. We originally booked into the cheapest of Sam’s rooms however recommend paying extra to be in one of the main double rooms.
Discover The Top Things To Do In Sri Lanka!
While driving around the country for 2-months, we created a Google Pinned Map with all the places we visited and were recommended in Sri Lanka. Grab your Pinned Map today and start planning your Sri Lankan adventure! Don’t miss out...click here to view for free!
Mid-Range Places To Stay in Arugam Bay $$
This place is awesome and many find themselves extending their stay here in paradise. The rooms are spacious, clean and have everything you need, with comfortable beds and a location hard to beat - right in the heart of Arugam Bay’s main road. It has a beautiful garden with lots of shade and most importantly a pool! For this price and quality, Surf Gangs might be hard to beat. Due to the backpackers it attracts, the nights might be a little noisy from people coming back from parties, but at least you can nap around the pool the next day!
A local family run place with loads of plants and walkways weaving around the rooms, which are spacious and include bug nets and A/C. It's a great place to stay, just a short walk down to the beach and close to all the best food in Arugam Bay. The owner, Billy also organises safari tours and Elephant Rock hikes, we chose to do these ourselves in our Tuktuk however would highly recommend a Pottuvil Lagoon Safari which is half the cost of Kumana or Yala National Park Safari.
Luxury Places To Stay in Arugam Bay $$
This place is unique, with an infinity pool overlooking the Lagoon, relax in the pool while watching elephants cruise by. A pretty incredible place to stay if you’re lucky enough to spot the wildlife. It’s not cheap, but for the rare opportunity to see elephants while relaxing around the pool, it might be worth the stay.
Pottuvil Places To Stay
Budget Accommodation in Pottuvil $
You’ll find plenty of homestays and cheap accommodation in Pottuvil, perfect for budget travellers who have a scooter or way of getting around. They’re definitely not as comfortable as some of the surf camps or hotels, but you’ll still be able to explore the area and have a base for a few nights.
Mid-Range Accommodation in Pottuvil $$
These beach huts are a hidden gem! Run by Anna and Nicole who will make you feel right at home, although the beach huts don’t have any A/C you’ll have the ocean breeze to cool you down at night. Whiskey Point Resort’s attention to detail doesn’t go missed and the hospitality is above and beyond, you won't find a leaf out of place, making this one of Arugam Bay’s best places to stay! Being in Pottuvil means you’ll have elephants never too far, perfect for a local safari.
Located right on the edge of Pottuvil point, if you’re looking for peace, nature and the ocean breeze then this is the place. The cabanas are located right on the beachfront and this eco-resort avoids plastic with everything being made from wood, feeling as though it's part of the surrounding nature. With top notch customer service, this place stands out from the rest!
Luxury Places To Stay in Pottuvil $$$
An eco-luxury resort featuring cabanas, an infinity pool and direct beach access. Perfect for holiday makers and families looking to put their feet up and relax after a long day adventuring. The beachfront accommodations let you witness the sunrise over the Indian Ocean and offer a slice of paradise near Whiskey Point in Pottuvil, which is one of the best surf spots in Arugam Bay for both beginners and intermediate surfers. The restaurant on site serves up delicious food with the option to be all-inclusive. This is a great option for those seeking some tranquillity away from the chaos of Arugam Bay Beach.
Peanut Farm Beach - Surf Camp
Fancy staying at a remote beach just a 10 minute drive away from Arugam Bay, with kilometers of golden sand nestled between the Indian Ocean and untamed jungle? Oh and you’ll have the place all to yourselves in the mornings and afternoon once the surf schools have gone home. Welcome to Peanut Farm Surf and Wild Resort. With one of the best Arugam Bay Surf Breaks just outside your beach hut, this place is all about surfing. I can only imagine the incredible stars that would be visible at night.
Summary Of The Best Places To Stay in Arugam Bay
Best For Families: Jetwing Surf & Safari (Pottuvil) or The Spice Trail (Arugam Bay Beach)
Best For Solo Travellers: Surf Gangs Arugam Bay
Best For Couples: Little Fairy A/C Room (Where We Stayed) or Fin’s
Best For Backpackers: The Hangover Hostel
Best For Surfers: Upali Beach Surf Resort & Cafe
Best Places To Eat In Arugam Bay
This small laid-back surf town is home to some of the best food we ate in all of Sri Lanka, with a choice of both local and western flavours. From the famous $2 all you can eat rice & curry buffets, to the aesthetic smoothie bowls, you’re sure to find some amazing eats while looking around the town. We have put all of our Arugam Bay restaurant recommendations in one blog, including the best pizza, cheap buffets, smoothie bowls, lattes and fresh fish.
Best Arugam Bay Tours
Arugam Bay Travel Tips
For cheaper local food, head over to the neighbouring town of Pottuvil.
To get to Arugam Bay & Pottuvil’s Best Surf Spots, rent a Tuktuk (use code “KandM” for 5% off) and put the boards on top, you’ll have the freedom to go wherever.
The Pottuvil Lagoon Safari is epic, but if you don’t have the budget, there's free elephant and crocodile watching places just outside the town. If you really want a safari then Kumana National Park is the quietest as everyone is too busy queueing to get into Yala.
Embrace The Chaos and get stuck in, the locals are friendly and love to help and share information about their home!
Stay in Homestays - Staying in local homestays meant we experienced authentic food and the local way of life. Everyone was extremely friendly and happy to help.
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Thank you for reading and enjoy your Sri Lankan adventure. Reach out to us over on Instagram @KateandMikesTravels. We always love to hear from people who read our blogs!
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