Panama (Tamil: பாணமை, Sinhalese: පාණම) is a coastal village in the Eastern Province of Sri Lanka, located 126 kilometres (78 mi) south of Batticaloa and 12 km (7.5 mi) south of Arugam Bay. It is the last populated settlement in the southernmost part of the province, within the Ampara District. Kumana Bird Sanctuary and Heritage park starts southwards from Panama. The village's name has been a cause for mix-up by Sri Lanka Post resulting in local mail being wrongly redirected to the Central American nation of Panama and vice versa for international mail.