The Beach Hut in Arugam Bay is at the beginning of the beach when you arrive from Pottuvil. It's a bit far from where the surfing is, but even so many surfers stay there for the atmosphere. I loved the little cabin, elevated as they say, five meters from the sea. The hotel was so well built and the cabins so high that they resisted the Tsunami in 2004. The owner, Ranga, is friendly, and sometimes cooks seafood and lobster at night. Apert from that they have a restaurant but the rice with curry I did not like very much, it was very simple and too expensive. The cabin, however, was faultless. 6 euros the night, with mosquito net and fan provided,and with one of the best views of the beach, and the cabin stays nice and cool during the day.