An up-market residential area, Nawala lies between the Commercial Capital Colombo and the Administrative Capital of Kotte. It is considered to be a part of Rajagiriya and is bordered by Nugegoda to the South and Narahenpita to the West. It comprises two wards of the Sri Jayawardanapura Kotte Municipal Council area:
Ward no. 3 — Welikada-Nawala (includes Bandaranaikepura and Royal Gardens, the Municipal offices and the western half of Nawala and of Koswatte, bounded by the Cotta Road on the north, the Heen Ela canal on the west, the Diyawanna Oya canal on the south and the Nawala Road on the east).
Ward no. 4 — Nawala (includes Welikadawatte, eastern Koswatte and Nawala, bounded by the Cotta Road on the north, the Nawala Road on the west and the Diyawanna Oya canal on the south and east).
Nawala is currently the ceramic capital of Sri Lanka. During the past couple of years, the number of ceramic stores increased rapidly, and still counting.
However, the old village of Nawala, which until the 1920s was mainly uninhabited, was bounded by the Diyawanna Oya to the South and East, the Heen Ela to the West, and Koswatte to the North. Its main feature was the ammunition dump, the bunkers of which are still visible in the Nawala Cemetery.