The name Beruwala is derived from the Sinhalese word for the place where the sail is lowered. It marks the spot for the first Muslim settlement on the island; established by Arab traders around the 8th century AD. A large population of Sri Lankan Moors; many of them are gem merchants; still live in the town-- particularly in the "China Fort". Msjid-ul-Abrar ; a landmark of Beruwala and Sri Lanka's oldest mosque; was built by Arab traders on a rocky peninsula overlooking the town.