The city is surrounded by Jaffna Lagoon to its west and south, Kokkuvil and Thirunelveli to the north, and Nallur to the east. Jaffna peninsula is made of limestone as it was submerged under sea during the Miocene period. The limestone is grey, yellow and white porous type. The entire land mass is flat and lies at sea level. Within one mile (1.6 kilometres) of the city center is the island of Mandativu which is connected by a causway. Palmyrah groves can be seen where land has not been used for construction. Other notable vegetation is a leafless shrub called talai (alae africana) and koddanai (oleander).

Jaffna city was founded as a trading town by European merchants. Although a historic port used by the native Jaffna kingdom was already in existence when the Portuguese arrived, it was the European mercantile activity that made it prominent. In colonial times, production of clothes, items of gold and silver, processing of tobacco, rice and other related activities formed an important part of the economic activities. In modern times, the port was its principal source of revenue but it has declined drastically. Currently it survives as a fishing port. The city had a wide range of industries, including food processing, packaging, making of household items, and salt processing, but most ceased after 1995. Since then, most industrialists, entrepreneurs, and business people have relocated to the rest of Sri Lanka and abroad. After 2009, foreign governments within the EU, US, India, and investors from the south of the island and the Sri Lankan Tamil diaspora have shown an interest in making investments in Jaffna district in general and Jaffna city in particular. Shopping malls such as the Cargills Square and hotels such as Jetwing Jaffna, Tilko Jaffna City Hotel have been built boosting the tourism industry in the city.

When someday comes you'll need to get in.

When someday comes you'll need to be able to get around.