Many of the buildings were destroyed in the 2004 tsunami. The Government's Min. of Defense CCD (Coastal Conservation Dept.) created what is now described as Arugam's second "Tsunami" end September 2011, when all beach side structures where demolished by bulldozers. Due to its popularity among tourists, the area has managed a slow recovery by private initiatives only. As late as 2011 no help has been received from any official source or international organizations. An exception is uncoordinated support for fishing folk as well as many school rebuilding programs, resulting in a continuation to provide only separatist schools for each community. Although there is a huge demand for an international school, one huge new building donated by the people of Japan remains largely unoccupied since the grand 'opening' ceremony in 2007.
The bay hosts a large fleet of fishing boats which operates off the beach. Many organizations donated boats after the tsunami and as a result there are far more fishing boats than ever before. The main beach is a bit dirty, compared to nearby beaches which are rather more aesthetically pleasing and also have excellent waves.
Arugam Bay is a popular surfing hot spot for locals and tourists alike. Arugam Surf Point has a very long, consistent, section-like right hand break. In mid-2010 hosted its first international surf contest in the Bay. The winner of such was Australian Julian Wilson repeated their contest tour in 2011 added a women's competition to the men's long board championship at Arugam Bay.
The nearby (4 km) Muslim village of Pottuvil is the center of commerce and transportation while tourist accommodations lie along the beach to the south of Pottuvil Arugam Bay (4 km) is also the gateway and the only road access to the Yala East National Park. This area is known as Kumana (44 km), to be reached via the Sinhalese settlement of Panama (17 km) and the shires at Okanda (32 km).
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