Since the end of the civil war in 2009 and the completion of Tsunami rehabilitation projects, Pasikudah is fast becoming an investors hub as foreign and local investors have shown interest in developing tourism along the beach. The Sri Lankan government’s strict environmental policies have prevented certain plans for mass development, however at the same time the government’s strong economic policies have promoted development to a certain extent. Presently many new luxury hotels and resorts have emerged along the Pasikuda beach to cater to the influx of tourists to the east coast beach resorts. Pasikudah is easily accessible from Trincomalee and Batticaloa
Pasikudah has become a popular tourist destination amongst locals and foreigners alike. This is because Pasikudah is known to have one of the longest stretches of shallow coastline in the world. In other words, people walk kilometers into the sea because the water is only a few inches deep and the current is relatively weak compared to the rest of Sri Lanka's coasts, which makes it a paradise for sea bathers and waders.