Veddapani Ella is in Atanwala village in Matale district. It is 3 meters high. The waterfall is fed by the Telgamuwa Oya, which starts from Kirigalpottha mountain and flows through the village of Atanwala. It is said that the Veddapani Ella was inhabited by the indigenous people or ‘Vedda’. The locals believe that the Vedda chief slipped and died here, hence the name “Vedda Penny Ella”.

Many aquatic lives, including 15 species of fish endemic to the Knuckles Forest Reserve, live in this area. Therefore, the use of this ecosystem should be done with caution. Since the Telgamuwa Oya flows through the Grama Niladhari Divisions of Atanwala and Ratninda, it is also very important to behave in a way that does not interfere with the activities of the people of the respective villages. The water in the Telgamuwa Oya, which flows very fast after rainfall, can become violent, so extreme caution should be exercised when using this waterfall and the Thelgamuwa oya.