The small town of Walawe is situated at the mouth of the Walawe River in the south of the island of Sri Lanka. The salt pans were to be found in the region between Walawe and Panama. Before the VOC gained power here, the salt pans served to supply the king of Kandy. Once the region fell under the influence of the VOC and the Company acquired a monopoly on the salt, relations between the Dutch and the kingdom of Kandy deteriorated.