My 2 trips were 8 and 9 years ago, respectively. Would say the 2 most memorable places in the country were the town of Gaulle in the south and taking the Lonely Planet advice and making Haputale (in tea country, reachable by train) a base and exploring the nearby national park. Amazing weather they get there. The train system is also scenic but quite a relic.

Hikkaduwa was really a great beach as well, though the tsunami may well have hurt both Hikkaduwa and Galle.

Hands down the best thing about Colombo was staying at the Galle Face Hotel on a $25 rate booked in the early days of Internet booking. They probably renovated and really raised the rates.

I think Kandy is a bit overrated in the same way I think of Chiang Mai proper in Thailand. Though it might be fine as a daytrip base. That elephant orphanage is very well-discovered but still worth a look.

Colombo can have a bad vibe because of all the precautions they have to take to guard government buildings and select other places against truck bombs.

Of all the places I've been, Sri Lanka and the Philippines struck me as the two that are loaded with smart, educated, hard-working people who try to do everything right, but whose countries have paid a steep price for lack of unity and civil war in places.