Nilaveli is located 16 kms north of Trincomalee, and 9 kms north of Uppuveli. It is a popular tourist destination especially in the months of July and August. Indeed hotels easily get fully booked well in advance during this period.
The main attraction of Nilaveli is the beach and the possibility of water sports. Scuba diving is highly popular as is snorkeling off Pigeon Island. As such the resorts tend to attract a younger wealthier crowd interested more in sport that getting a sun tan on a beach.
The beaches have golden sands and the sea less treacherous than say the western coast. In the evening you can see crabs scuttling around which is fun to see.
The area still has a fishing presence. Many of the locals are still fisherman as seen by the many fishing boats on the shore. You may also see them group together to haul in a catch. Community spirit is high as they need to work together to make a living.
The area of Nilaveli caters for the tourist, and is increasingly offering new services to sell. So not only do you see new restaurants, but you may see a place offering yoga, hiring motorbikes or ayurvedic massage. Hotel construction seems to be ongoing and the tendency to expand seems to be ever increasing as more and more tourists choose to go on holiday here.