Palaly (Tamil: பலாலி) is a small town in the North Sri Lankan city of Jaffna.

It is one of the main transport service connections Jaffna Peninsula with the rest of the country and India.

Palaly is in a High Security Zone declared by the Sri Lanka Armed Forces of an area of less than 25 square kilometers due to the civil war.

2176 previous inhabitants of the land came forward to challenge this ruling in court, the case is ongoing.

Till then much of the essential food items, medicines for the civilians and the armed forces as well as ammunition were brought regularly via air to the SLAF Palaly.