A new tourist destination is being created centering the Pasikudah beach after the establishment of peace.
The livelihoods including the tourism industry was hit in the North and East when the LTTE cast its dark shadow on these areas. The tourism industry is raising its heads once again in the Batticaloa area, with the reawakening of the East following the war. Pasikudah is one of the picturesque beaches in the world. The massive coral reefs and the shallow sea belt are tourist attractions although tourist resorts have so far not come up along the beach due to terrorist activities. Under the Eastern Resurgence Programme of the Government 150 acres have been allocated for tourism promotion. The Pasikudah beach is now being developed under the patronage of the Sri Lanka Tourist Board. The first tourist resort has been built in Pasikudah after 21 years. It was inaugurated by Minister Basil Rajapaksa. Known as “Malu Malu”, it consists of all modern amenities along with 40 rooms. Thirteen new hotels are also being constructed. The Government is planning to set up around 1000 tourist resorts in the area.