Lagoon Cabanas, comprising five secluded, private cabana style abodes recently built around the lagoon is located in the Ampara District in North Eastern province of Sri Lanka.

It is located in the village of Panama which is 12km south of Arugam Bay. Panama is said to be the last inhabited village that precedes the Yala National Park from the Eastern side.

Panama that stays somewhat inland yet intersects with lagoons is rich in bird life. The panoramic beach that stretches endlessly, the lagoon of Panama, the area surrounding it, sand dunes and rock boulders and an ancient farming lifestyle all combine to make the area surrounding Lagoon Cabanas a rich cocktail of enchanting landscapes and an area rich in biodiversity.