i would also suggest the Cinnamon Grand in Colombo. while not quite luxury, it kicks the hilton (and the galle face). It's right across the street from the galle face and has a great pool up on the third or fouth floor. best pool in town in my book. the main restaurant is stylish and quite good, and as i said the rooms beat the hilton. watch out for the lowest rates, they are in the older building which isnt that nice. the $100 rate should get you a good room. you are close to park street and a few other good dinner spots too.

for other areas- Taru villas (owners of park street) have places that are top notch on the beaches in the south (see their website). Sweet boutiques where you can relax on a beach ALL alone and then eat pretty much alone. "Taprobana" was so relaxing. the car ride back to the airpot was brutal though. Again, call 'em up and ask for a better rate...