Diyaluma Falls is located 6 km away from Koslanda in Badulla District. This falls is formed by Punagala Oya, a tributary of Kuda Oya. Kuda Oya is a tributary of Kirindi Oya. Diyaluma Falls is 220 m (720 ft) high. The distance from Ella to Diyaluma Falls is 38.5 km. This waterfall is the 2nd highest waterfall in Sri Lanka and the 361st highest waterfall in the world.

The "rapid flow of water" is the meaning of Diyaluma. This waterfall consists of two different levels. These are called the Upper Diyaluma Falls and the Lower Diyaluma Falls. The dramatic drop-off of the waterfall can be seen at the lower part of the falls. Also, there are several natural pools at the top of the waterfall.

Several ways and several starting points are available for the Diyaluma hike. One way is available at Makaldenya Junction on Poonagala Road. It is a way above the Diyaluma Falls. From here, travelers can trek down the hill arriving at Diyaluma Upper Falls within about 30 minutes. Then, travelers can walk to Lower Diyaluma Falls within 10 minutes from there and return down the hill towards Koslanda village.

Another way is to begin at Koslanda village. In this route, travelers should hike to the top of Lower Diyaluma Falls and continue to Upper Diyaluma Falls. Here, travelers can travel back down the same route.

Diyaluma Falls is one of the best places for adventure and the most famous place among local and foreign tourists.