Unawatuna has a modest range of diving, snorkelling, surfing and other watersports on offer.
There are several interesting wreck dives around Unawatuna, as well as reef and cave diving. Wrecks include the Lord Nelson, a cargo ship that sank in 2000; it has a 15m-long cabin to explore. The remains of a 100-year-old British steamer, the 33m Rangoon, are a 30-minute boat ride south of Unawatuna.