Punta Ballo is a white sand beach about 8 kilometres south of Sipalay proper, the base for most of the serious diving in the area. Artistic Diving and Easy Diving both operate here, offering trips to the full range of Sipalay's 40-plus dive sites. The beach is less visited than Sugar Beach and has a quieter, more purposeful atmosphere — most people here are divers, not sunbathers.
The offshore reef at Punta Ballo itself is a decent beginner site with good coral cover and fish life, but the main draw is the access it gives to deeper sites further out in the Sulu Sea. The Sunken Island dive site is a particular favourite: a submerged plateau at 15 metres that attracts enormous schools of jacks and fusiliers, with larger pelagics occasionally passing through.