Tamil Nadu esp pandya Kingdom was famous for Pearl harvesting.

Trader
dealing with Pearl coming from Madurai might have anchored at Hampantota for
selling pearls. In Tamil, Ambi means Ship, raft, and Boat.

அ பி² ampi, n. [K. ambi.] 1. Small boat; ேதாணி. பாி க வ பி காி க வ பி

(சில . 13, 176). 2. Raft, float; ெத ப . ைற ய பி வா (க . 103, 37).
3. Ship; மர கல (திவா.)

http://dsal.uchicago.edu/cgi-bin/philologic/getobject.pl?c.0:1:2637.tamillex

In Hampantota area, those traders might have a place for selling pearls. In Tamil,
ெதா means enclosure for selling oysters at the pearl-fishery; சி பி
வி இட .

In Tamil, ெதா ³ toṭṭi , n. [T. K. doḍḍi, M. doṭṭi.] 1. Fence, yard, pound;

ேவ யைட . (W.) 2. Enclosure for selling timber, fire-wood; மர விற
வி இட . விற ெதா . 3. Enclosure for selling oysters at the pearl-fishery;
சி பி வி இட . (J.) 4. Small village; சி . ஊெர லா
ப ெதா (தனி பா. i, 142, 37).

In this connection, there is a village called Sippikkulam or Sippikulama adjacent

to Hampantota. In Tamil chippi or Sippi means Pearl-oyster shell.

Therefore, Hampantota might have been derived from the Tamil word
ampanthotti (ampi + toṭṭi) which was later changed into ampanthottai
அ பா ேதா ைட in Tamil and Hampantota in Singhalese.