SaBaba's is basically the only spot right on Whiskey Point
, Arugam Bay's most remote surfing point. From the main town it's about 12 km but worth it. For surfers it's a great and less crowded spot to catch waves and for non-surfers it's a nice place to chill and watch other people surf. You can swim here, but expect to use your body as a board, AKA, you'll get thrown around a bit.
SaBaBa's itself is a well designed spot run by Babaya, Mambo's brother. Mambo is the guy who kinda runs Hikkaduwa and now, increasingly, Arugam Bay. Note that SaBaBa's is basically off the radar. There's no website, no Facebook here and the number here is Babaya's personal phone. If you go there they'll serve you but this is an underground spot.
The main architecture of the place is just a big covered deck looking out onto the beach. There's a bar and some rooms (which are usually booked) and that's about it. A lime juice is Rs. 200, a lassie is Rs. 250, and a mango milkshake is Rs. 380, to give you an idea of prices.
We just had a beer here but the food is supposed to be good. We would also assume that the rooms are good, just based on the Mambo's brand, but hard to get. As a place to stay this is basically for hardcore surfers, there's nothing much else around.
As a day trip , however, SaBaBa's does have something for everyone. At night they have parties also.
Try to get one of the day beds on the beach. Great place to read.