Kilaaly was one of the border villages of the Kilinochchi District in the North of Eelam that was once the landing route between Jaffna and Kilinochchi. During the war in the north, Kilaaly was the only sea route to reach Jaffna by sea. Also this route helped people to evacuate from Jaffna to Vanni.
This village is an olden village. Kilaaly is a beautiful village bordered by the Kilaaly Sea in the south, the A9 road on the north, the Thenmaradchi region on the west, and the Muhamaalai Allippaalai area on the east. The main livelihoods of the people living here are fisheries, agriculture and coconut farming.
Kilaaly has also many churches and temples. The Jacob Pilgrimage takes place here. Sandiyammayor Church, St. Thomas Church, Kanmani Mary Church, St. Anthony Church, Viyaakula Mary Church, and Veerapathirar Temple, Vithakappillaiyar Temple, Niluvil Pillaiyar Temple, Iyanar Temple, and Nachiyaar Temple are some of the churches and temples that are spiritually famous in the village.
The village has ponds like Kodukkilachchi Pond, Neeravil Pond, Tamaraikkulam, Kanivelikkulam, Kovalai Velikkulam. These ponds provide water suitable for agricultural and coconut cultivation and ground water.
Kilaaly was a major port during the reign of the king and during the reign of the Portuguese. The Portuguese safely landed through the Port of Kilaaly Sea and reached the Pachchilaipalli. History said that the Portuguese destroyed the Saiva temples and established Christian churches.
The ruins of many forts can be found in Kilaaly. However, every historical symbol of Tamils existent, historical studies, historical antiques are covering and hidden by the Sri Lankan state.
The name of the village, Kilaaly, came from the name Marubi it says. Marubi because it says the Landlords lived here in Kilaaly and therefore the name Marubi. Later Marubi became Kilaaly.
Kilaaly lives with the history that the village had sacrifices many heroes to the war of Tamil Eelam.