Kalu Diya Pokuna in Kandalama is not to be confused with a place with a similar name in Mihintale, Anuradhapura. The name of the place, again is derived from the the shadow of the forest and hills falling on the lake rendering the water to appear black. This place is an amazing example of cave architecture. The use of the boulders to build cave dewellings with multiple floors. The finishing used in the ancient structure are still visible in places. The whole area is reputed to contain more that 90 caves. The forest is inhabited by leopards and wild elephants who frequent the site and leave their mark on the trees.