Chundikkulam Lagoon and its surrounding area was designated as a bird sanctuary on 25 February 1938 under the Fauna and Flora Protection Ordinance (No.

[1] In January 2009 the Sri Lanka Army's 55 Division, advancing from Nagar Kovil, re-captured the area around Chundikkulam sanctuary from the militant Liberation Tigers of Tamil Eelam.

[6] Following the end of the Sri Lankan Civil War the government announced plans to convert various sanctuaries in the Northern Province into national parks.

[10] In May 2015 the government announced that Chundikkulam, along with Adam's Bridge, Delft and Madhu Road, would be designated national parks.

[1] The surrounding area includes palmyra palm plantations, scrub forests and a variety of dry zone flora.