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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.

As a legacy for the work carried out by these two NGO, a local organisation, Ecowave, acting as a social business, has been established.

Ecowave is currently managing an outlet in the main street of Arugam Bay, providing market opportunities to the farmers, and offering community tourism itineraries for travelers.

The nearby (4 kilometres (2.5 mi)) 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 kilometres (2.5 mi)) is also the gateway and the only road access to the Yala East National Park.

In 2.2 kilometres (1.4 mi) distance there is Pasarichenai Beach.

Arugam Kudah's literal Tamil translation is "Bay of Cynodon dactylon".

As late as 2011 no help has been received from any official source or international organizations.

Arugam Bay has a good local surf scene and is home to some of Sri Lanka's most talented surfers and in recent years surfers from Arugam Bay have dominated national competitions.

In mid-2010 the Association of Surfing Professionals hosted its first international surf contest in the Bay.

Other breaks in the area include Whiskey Point and Pottuvil Point to the north, and Elephant Rock, Peanut Farm and Okanda to the south.

These breaks have attracted a steady stream of international tourists for several decades.

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