It was affected by the tsunami caused by the 2004 Indian Ocean earthquake. Villages affected were Telwatta, Paraliya (Queen of the Sea rail disaster), Dodanduwa, Kahawa, Rathgama. The place is on the way from Colombo to Galle on the famous Galle road. It is primarily a tourist destination, and serves as a great beach with options to surf, snorkel and enjoy the sun. The town is arranged around the one main road which runs from Galle to Colombo. This road is heavily trafficked and pedestrians and tourists are advised to exercise caution when crossing.
In the wake of the tsunami, many of the families who had lost everything were given sewing machines as part of the relief operations. As a result, the town has a multitude of tailors who will custom make shirts, pants, and shorts. The area also has a reputation for offering a vibrant nightlife. Hikkaduwa is also very popular with board-surfers. It's a well-known international destination for board-surfing. Hikkaduwa was featured in an episode of Anthony Bourdain's television show No Reservations.
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