Kosgoda is famous for its turtle hatchery - operated by the Wild Life Protection Society of Sri Lanka. It was established in 1981 to protect Sri Lanka's turtles from extinction. The hatchery pays fishermen for eggs that they collect at night along the sandy beach. Visitors can see huge tanks filled with new born turtle hatchlings. After being fed, the baby turtles are taken to the sea and released when they are 2-4 days old, usually during the safer hours of darkness. Although October to April is the main laying season, some eggs can be found at Kosgoda throughout the year.

The beaches of Sri Lanka are the nesting grounds for five species of marine turtles. They are the Green Turtle, the Leatherback, the Hawksbill, the Loggerhead and the Olive Ridley. All 5 species have been recorded to nest along specific areas of Sri Lanka's coast. Studies have indicated that beaches can be categorized in accordance with visitation by different species of turtles.