Most of the site seeing places in Kandy have pedlars who are selling the Srilankan masks- these are gloriously colorful masks that make for a great memoir on your walls. I do recommend picking one up from just outside the Lanka Tilaka temple. The craftsman has his workshop right there and gives you a good deal on most of his assortment.
What to pay: SLR 1000 per mask
This shop has a the most unique high quality authentic Batik designs which you can't find anywhere else...
What to buy: This special shop has many authentic high quality batik wall hangings, batik ladies wear like batik silk scarves, silk designer sarees, silk beach wraps, silk wraparounds, Silk skirts, tops, Men wear like batik shirts, t shirts and batik bags, cushion covers, table clothes, batik post cards and many more..
You must make a visit to see the different...
What to pay: US $ 5 to Us $ 500
This shop is a family batik shop which is doing since 1979. They produce high quality uncommon modern artistic batiks on cotton and silk which you can't find in any other places. Just because of their quality and their unique designs, the world renowned "Lonely Planet Guide Book" to Sri Lanka is recommending their batiks since 1985 as "The best and the most original batiks in kandy".
What to buy: Batik wall hangings, Batiks cotton & silk gents wear ladies wear, cushion covers, Scarves, Table clothes, Etc;...
What to pay: 10 US $ to 300 US $
The Keells Supermarket in Kandy will most probably have what you need.
There are also Cargill's where you can shop for groceries and fresh produce.
Prices at the supermarkets are cheap, so it is good to stock up here with whatever you need.
What to pay: Fixed prices
This shop is located right along the front of the Hotel SUISSE, and I became friends with the owner, FAHRY, over 20 yrs ago. (I have stayed in his home and watched his family grow from prior to his wedding and now 3 children.) He deals primarily with the Sri Lankan gems and most pieces are unique, hand-crafted, European-style and he can also take special orders if you have the time. He accepts credit cards.
He is available any reasonable hour of the day and can be reached at his cell phone, if the shop is closed (0777-805061--and if you use this, tell him you know of me, 'Trish of US/Mexico' and you can be assured of reasonable prices and good quality).
He also has another large shop at Le KANDYAN HOTEL, which also has full range of Sri Lankan souvenirs, etc.
What to buy: Rings, necklaces, bracelets, pins, etc., with Sri Lankan gems.
This is a center for traditional arts and crafts with a government-sponsored sales room and fixed prices. Offerings include hammered and cast bronze items, wood carvings, lacquer, woven wall hangings, paintings by local artists, cloth and textiles, and at least a few traditional drums (the real kind, not souvenirs). They don’t take credit cards, but will hold your selections until you can get cash.
You can have someone polish dingy brass for ~Rs50 tip (small items).
Elephants are sold everywhere in Sri Lanka. The brightly coloured elephants are only relevent to Kandy. This is how they dress the Elephants fot the festivals in Kandy, especially the Esala Perahera when they a replica parade the Buddhas Tooth through the streets of Kandy
Look out for the Mlesna tea shop along Dalada Vidiya, close to Delight's Baker.
The prices are a little steeper than the Mlesna outlets in Colombo (Majestic City), but there's a wider selection of gifts.
What to pay: Rs75 for flavoured tea in pouches.
Around Rs250 and above for gift packages (tea packed with teddy bears, tea packed in porcelain elephants etc)
You'll find most souvenir shops and shops selling your daily necessities around Temple Street (North of the Lake near the Temple of the Tooth).
Internet cafes, bookshops, sweet shops, bakeries - you name it, you've got it.
What to buy:
Sri Lanka is famous for tea - and that is delicious tea. Kandy is not really the tea producing town, but if you wish, you can buy good quality tea here.
In local market, the tea shop has a range of tea from import quality to cheap down graded ones. Inhale, and you will have lung full of fresh tea aroma.
The shop is at the same place where the shows are held during the evening.
They have quite a variety of local craft in the two shops.
Prices are fixed and quite reasonable.
What to buy: Local craft
What to pay: Fixed prices
In Kandy there are batik factories with adjoing shops. It is possible to see most of the process from a plain cloth to a wonderful batik.
What to buy: There are pictures for wall hangings or clothes.