Akarahaduwa is a village in Matale District, in Sri Lanka's Central Province. It is bounded on the west, north, and east by the Amban River, a tributary of the Mahaweli River.
According to Archibald Campbell Lawrie's 1896 gazetteer of the province, the inhabitants of the village smelted and delivered iron. A considerable number of the villagers were Moors who supported their lebbe and their mosque.