Panama village is in Ampara district of Sri Lanka and it is the gateway to Kumana National Park which is a bird sanctuary. There are around 2000 families in Panama. The main livelihoods for these people are farming, Chena cultivation, paddy cultivation and fishing. Panama is 17 kilometers from Pottuvil town which is an East coast of Sri Lanka and also 14 kilometers from Arugam Bay which is one of the famous tourist destinations in Sri Lanka.
Panama village is closer to various surfing points such as Panakala,Okanda, Peanut Farm, Elephant Rock which attracts a lot of tourists. There is also beautiful lagoon, beach close to Panama village. The peak tourist season for Panama is April to October and throughout the year also both local and international tourists pay visits to enjoy wildlife watching in Kumana National Park and stay at Panama for a real Sri Lankan village experience. Kumana Bird Sanctuary and Heritage park starts southwards from Panama Village. Panama is still famous for its Pattini Cult which is in Tamil “Kannaki Amman”. This ancient village can be seen in the historical maps of Portuguese and Dutch as Panao, Panova, Paneme.