The New Old Dutch House is an the old house of the Galle Fort colonial district. The house has been fully renovated and converted into a pension. It is next to the sea and is very quiet. You can walk 5 minutes to the beach or a little further if you're looking for an ever quieter beach. There are 8 rooms with private bathrooms and a garden where you can have breakfast. The rooms cost between $ 25 and 45, depending on the size and also the season. They also have a refrigerator which you only really need for water and maybe some fruit. It´s so cheap to eat in a restaurant that it´s not really worth eating in the hotel. Lastly, some of the rooms are air-conditioned and some just have a fan.
The McLeod Inn is a small family hotel that is on the street Rajapihilla, ie going up the hill of Kandy, next to the lake. To go to the center, you have to go down about five minutes before reaching a busy street where it will be easier to get a tuk tuk. The Temple of the Tooth is a half hour walk away, a nice walk but not for every day. The hotel has six rooms, with private bathroom and hot water. As you are in a high altitude, some of the rooms have good views of the city, ask for them, or visit several to choose the best. It's a nice place to rest a bit and get away from the noise of the city. The family offers good food at a fair price, but you have to book in advance if you want to eat there.
The Lake View Rest is one of the many hotels on Rajapihilla hill, a little outside the centre of Kandy. On foot, you need about 30 minutes to get to the centre, but I liked it because you're just beyond the pollution, exhaust fumes, noise etc. The place has a nice tropical garden and most rooms enjoy a balcony with beautiful city views. It's a family hotel with fifteen rooms, which are very clean. All have hot water. There are several hotels around that have similar names and it's sometimes difficult for drivers to know exactly where to take you. I recommend that you print the reservation with driving directions. The restaurant serves classic food from the country, curry rice, fried rice ...
The Republic Holiday Inn is a small hotel managed by a nice family. They offer a lot of services, like transport from the station, although you can ge there easily with a tuk tuk and only costs you a euro or so. The also offer trips to the botanical gardens, the elephant orphanage ... and also you can prepare dishes to eat in the common room or on your balcony. The hotel overlooks the city and has great views. Rooms cost 10 to 15 dollars per night, but in high season, such as during the Esala Perahera festival, prices rise and rooms get booked very quickly.
The Fort Dew is a guest house in the small colonial city of Galle, a UNESCO World Heritage Site. It is a beautiful two-story colonial house that has been converted into a hotel and offers a great value. They put a bit more thought and effort into the decoration, at least compared to other guest houses. There are mosquito nets, high-quality beds, and heavy wooden furniture. the beach is not far away. You can actually walk to a small beach nearby, but I'd recommend taking a tuk-tuk and going a bit further. Some rooms have AC (and are more expensive), while the others just have fans. The hotel has internet, phones, satellite TV, and offers a lot of services like taxis and guides to help you discover the island. Upstairs, there is a terrace overlooking the both fort and the sea.
Drift BnB is an awesome place to stay if you're planning on being in Colombo for a few days. It's located right off Galle Road (the main coastal road in Colombo) and is about a 5min. tuk-tuk ride from Galle Face Green (around 100-150 rupees) and a 7-8min. tuk-tuk ride to the Colombo Fort Train Station (200 rupees). There's not a whole lot in terms of monuments that you can walk to, but the transportation is cheap enough that you can reach pretty much every major sight in Colombo in under 10 minutes. There are, however, a lot of good bars and restaurants in the area, including the world-famous Barefoot Cafe, within a 5 minute walk.
Drift is billed as a B&B but really it's a hotel, which is fine. The rooms are thankfully air-conditioned and have comfy beds, satellite television, and hot showers (though you'll probably be taking cold ones to cool off...it is Sri Lanka after all). One nice thing about Drift BnB is that it's got a youthful boutique feel to it without every crossing over into backpacker territory. The main waiting room has some psychedelic-style artwork and the rooms have bohemian touches like old Cointreau bottles serving as flower vases. The staff speaks perfect English and are really friendly. They even have a map prepared of all the good cafes and restaurants in the area.
All in all, I couldn't have asked for a better place to stay in Colombo. It's central, quiet, and has just the perfect blend of tropical authenticity and modern comfort to make for a really nice stay in the city. I'd recommend it 100%.