Theli Falls is flowing from the Gurugoda Oya, is not a significant tall waterfall. It is a beautiful ecological zone created through a large rock plateau. There are three small cascading waterfalls. The ancients named these three waterfalls as Teli Falls, Gabada Falls and Kanawandum Falls. In addition to these three waterfalls, there are numerous small waterfalls as well as numerous rocky outcrops filled with still water.
There are various folk stories about how the waterfall got its name. One of them is the story associated with King Walagamba. The king and queen were in the habit of bathing in the waterfall, and one day a gold plate fell into the waterfall at the hands of the queen. Therefore, it is believed that this area came to be known as Thali Ella - Theli Ella.