The lagoon is surrounded by a region containing coconuts, open forests, grasslands, and shrublands. The land is used for prawn fishing, salt production, and rice cultivation The lagoon has extensive mangroves, seagrasses, and some salt marshes.

This place was long left untouched and remained undiscovered for mass tourism for decades. The tourist attractions here are worth visiting. This area owns many nature reserves which include the popular ones like Wilpattu National Park and the Puttalam Lagoon amongst others.