Matugama is a semi urban town surrounded by mountains. It is an electorate of the Kalutara district, in Western Province, Sri Lanka. The town is located 64 km to the south of Colombo. Matugama is also spelled as Mathugama.

Matugama is part of the Pasdun Korale ('County of the five yojanas'), created when King Parakramabahu the Great drained the Kalu Ganga basin. In the days of the State Council it comprised the present-day Agalawatte, Bulathsinhala and Matugama constituencies. In 1946, it was divided into two, the eastern portion becoming Agalawatte (itself subdivided in 1960 by the creation of Bulathsinhala).

Since 1989 it has been an electoral division of the Kalutara District, not a constituency sending a member to parliament in its own right.