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11 Amazing Guesthouses in Sri Lanka for Budget Travelers (2023)

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Sri Lanka is filled with guesthouses. & I’ll choose a cozy guesthouse run by locals over an Airbnb or hotel any day. In fact, many of my fondest memories in Sri Lanka are of warm hosts and breakfast spreads overlooking mountains (or sometimes monkeys).

Finding a guesthouse in Sri Lanka, even on a tight budget, is easy. But finding a phenomenal guesthouse that leaves a lasting impression, adds to your overall understanding of Sri Lanka, & is comfortable beyond belief? That can be tricker.

But during my month-long trip through Sri Lanka a few hosts went above and beyond. Here are the 11 budget-friendly guesthouses you absolutely must stay at during your next trip to the teardrop island.

What is a Guesthouse?

By definition, a guesthouse is an inexpensive hotel-type lodging or a private home converted for the sole purpose of lodging.

But what exactly does that mean?

In short, it’s a lodging run by locals who often live in the general vicinity. Guesthouses vary around the world.

A typical guesthouse room.

In Cuba, they are referred to as Casa Particulares and you’ll find yourself sharing a home with the host. It’s more of a guest room.

In Thailand and Myanmar, you’ll often find guesthouses to be a cluster of hotel-like rooms with the owner living next door.

In Indonesia, a guesthouse can be a single room in a large housing complex or a private bungalow on a larger living compound.

You Should Stay in Guesthouses

There are lots of reasons as I traveler I prefer guesthouses to less personal accommodation.

  • The highest level of comfort for the lowest price.
  • It provides a more immersive travel experience.
  • The option to have home-cooked meals.
  • Local insight into the best attractions, hiking routes, and food spots in the area.

But the most important reason you should stay at guesthouses is that it directly supports locals and their families. Unlike hotel chains and Airbnb’s run by foreigners, guesthouses are run by locals.

AirBnB’s can be a great option in destinations across Europe & the United States. I’m referring to travel mostly in the Global South where hosts are often foreign investors.

As travelers, we have a responsibility to support local businesses and communities in the places we visit. Guesthouses are a great place to start.

My Favorite Guesthouses in Sri Lanka

These hosts really went above and beyond to make the perfect guesthouse experiences in Sri Lanka. Be sure to book ahead of time to score the best deals.

1. Sweet Home Tourist Rest (Anuradhapura)

I have never been so welcomed into someone’s home as I was at Sweet Home Tourist Rest. The hosts are a lovely young couple (recently married, they showed us their wedding video), the room is massive and air-conditioned, & the dinner spread they provided was top-notch.

A shot of a wild leopard at Wilpattu National Park.

The host picked us up at the train station for free, offered to drive us to the old town and give us our own private tour (just because he loves his home town that much), & set us up with a National Park Ranger to take us to Wilpattu National Park.

2. Robert Inn (Dambulla)

Robert Inn sits in the lovely serene landscape of Dambulla. & once again this basic accommodation is elevated by the attentiveness of the host. The host, Robert, will stay up until the wee hours of the morning to welcome you, as well as arrange cheap transport if you’re planning a visit to the Dambulla caves.

He also knows everyone in town and saved us from being scammed by an overly enthusiastic tuk-tuk driver he thought was out to take our money.

3. Sigiriya Rock Gate Resort (Sigiriya)

Ignore the resort in the name because Sigiriya Rock Gate Resort is most definitely a guesthouse. Maybe my favorite guesthouse in all of Sri Lanka. You’ll enjoy a fresh-cooked local breakfast on the outdoor patio surrounded by lush gardens and if you opt to have dinner on the property (& you should) you won’t be disappointed.

The host gives you full access to his bicycles for exploring the rural landscape of Sigiriya and he even will run to town on his motorbike for a late-night beer run.

You even have the option to stay in the lovely tree house above with views of Lion Rock.

4. Kumari Guesthouse (Polonnaruwa)

Kumari guesthouse has the BEST food. The rooms were cheap and comfortable and it’s within easy biking distance of the ancient ruins of Polonnaruwa. There’s not much more you can ask for.

5. Apple Sara Home Stay (Kandy)

This guesthouse is run by a lovely family but most of your needs will be catered to by the tuk-tuk driving son. He speaks English fluently and was always willing to shuttle us to the train station or downtown Kandy as the accommodation sits in the scenic hillside out of town.

He’s well connected within Kandy and able to score front row seats last minute at one of the cultural dance performances. He’s also available for hire to tour the surrounding area. He drove us all the way to the Ampuluwawa Spiral Tower more than an hour from the city and it was one of our favorite days in Sri Lanka.

6. DAM House (Maskeliya)

Planning on joining the throngs of locals making the pilgrimage to Adam’s peak? This is where you want to stay. Not only is this guesthouse only a 10-minute tuk-tuk to the base it’s also the perfect place to recover afterward.

You can enjoy breathtaking balcony views of the peak before your climb & the breakfast spread is AMAZING. Just be sure to order the night before.

Not many travelers make it to Maskeliya, instead opting to stay in the larger town (Hatton) a 30-minute drive away. But staying closer means an extra hour of sleep for those hoping to hit the peak at sunrise. A wake-up call at 12AM or 1AM instead of even earlier.

7. Backpacker’s Nest (Nuwara Eliya)

Backpacker’s Nest feels like a traditional bed and breakfast. Tucked into the vibrant tea fields that make Nuwara Eliya famous, this little home has several bedrooms, and makes the best cheese Kottu in Sri Lanka.

With a constant rotation of backpackers this popular spot is great if you’re looking to meet some fellow travelers but still retain the privacy of a hotel. The owner has some great recommendations for sights to see in the area and driver’s on call to take you for a steal of a price.

They have changed their name to Scenic View Bungalows. You can contact the property directly from the links I have provided and book either the entire home OR a single room.

8. Sadew Homestay (Ella)

Ella has no shortage of accommodation options but they don’t come cheap. Sadew Homestay is the absolute best bang for your buck. The rooms were cozy, the host offering up amazing tea, dinner, and treats as well as secret hiking routes to iconic spots you won’t find on any blog.

Sunrise from the balcony before breakfast.

In the early morning, as the sunrises purple on your balcony, monkeys will skirt through the trees and her resident pets (a cat and dog) will join you for breakfast.

Full Disclosure: When I first arrived in Ella I was disappointed. I had heard nothing but raving reviews of the mountain town and praises that it was the best city for travelers in Sri Lanka. The guesthouses were either extraordinarily expensive or poorly run and basic. The main street was packed with over-priced vegan eats and cheesy tourist bars.

It took us a few days but we did fall in love with Ella. Unfortunately, it has been Sri Lanka’s first victim of over-tourism. Stay at Sadew Homestay and you won’t particularly care.

9. Mermaid Cabana & Tree House (Tangalle)

Whether you opt for the elaborately crafted treehouse with a spiral staircase or the traditional homestay rooms, you’ll enjoy a pot of tea at welcome and the cool breeze drifting in off the ocean.

Although the traditional lodging is basic, it’s comfortable and cheap. Add to that it’s only a 5-minute walk to Tangalle beach and it’s the perfect place to tuck away for a few days.

10. Indunil Place (Hiriketiya)

Billowy white curtains wrap around your bed blowing in the Sri Lankan breeze. Breakfast is served every morning in the garden outside. & just a 10-minute jungle walk away is one of the most beautiful beaches in Sri Lanka.

& you won’t beat the price.

11. Diwanka Villa (Unawatuna)

Diwanka Villa is one of the largest houses I stayed at in Sri Lanka. Each room has it’s own private balcony overlooking the overgrown surrounding jungle. This guesthouse is ideal for people looking to enjoy some peace and quiet or just to get away from it all. It’s about a 15-minute walk to the beach or the bus stop.

& as usual with guesthouses in Sri Lanka…the breakfast spread won’t leave you disappointed.

This collection of budget-friendly guesthouses scattered across Sri Lanka will make you fall in love with the country. Just like we did. & give you a more authentic experience along the way.

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