The male tourist is said to have been last seen earlier today “waving his hands in the air” for help before being pulled under water at a lagoon known as Crocodile Rock.
According to the uncorroborated reports, the man, believed to be in his early twenties, was in the area with a group of friends and had wandered away to find a toilet before he was snatched.
The area, known for its large population of crocodiles, sits just yards away from Elephant Rock - a popular spot for surfers.
Sri Lankan police and the army are said to be searching the shore surrounding the area.
A Scot who is currently on holiday in the area, but wishes to remain anonymous, today said: “A British tourist was at a surf spot called Elephant rock. There’s a lagoon right next to the sea he went to the toilet next to the lagoon and was grabbed by a crocodile.
“There are lots in the lagoon. People last saw his arms in the air in the water and then was grabbed under. I was there but didn’t see it happen though. Horrible.
“They are searching for a body but havn’t found anything yet.
“The army were down and there are people put on boats checking the shore because crocodile won’t eat anything in water they will take it on to dry land to eat prey.
“They are 90 per cent sure it was a crocodile but a couple of the guys said there was quicksand in the lagoon.”
“A few people that knew the guy were just on the ground,I didn’t get that close but they all just seemed in shock and not saying much.
“There were a large crowd of Sri Lankan men surrounding them and they had bits of paper.”
There are two different kinds of crocodile that live in Sri Lanka, the Marsh, or ‘Mugger’, crocodile and the estuarine crocodile.
There are believed to be thousands of marsh crocodiles spread throughout various water bodies in the island.
In April of this year, a 13-year-old girl was attacked and dragged away by a crocodile while she was enjoying a day out with her family at Pulnewa Lake, in Galnewa.
Another 17ft crocodile was captured by locals in the village of Thibbotuwawa, Akuressa, in June this year.