A little way from the south of Arugam Bay ,you will come to an endearing little village called Panama.The unspoiled rural neighborhood is full of life and tradition that is rare in the modern Sri Lanka .the way of life of the occupiers of Panama still holds traces dating back hundreds of years and it is still being passed on to the next generation .The distinctive village is encircled by farming lands, paddy fields and greenery .The community living in harmony with the natural beauty of Sri Lanka only holds within it 5000 families across the Panama The only village known to be comprised purely on Sinhalese citizens in the East part of Sri Lanka.