The lagoon is surrounded by the densely populated Jaffna Peninsula containing palmyra palms, coconut plantations, and rice paddies.

The lagoon attracts a wide variety of water birds including American flamingoes, ducks, gulls, terns and other shorebirds.

[citation needed] The shores of the lagoon are largely sand, shingle and mud, with many small creeks.

In the 15th century, the region came under the control of the Portuguese, who built a fort in the area due to its strategic position overseeing the lagoon.

During the Sri Lankan Civil War, the area was critical for the LTTE, as the lagoon was used to smuggle in weapons and funds from abroad.

As a result of the conflict, much of the civilian population left the surrounding areas, either to nearby major towns and cities, or as refugees abroad.