Galle Fort Hotel is a very fancy hotel with a very fancy restaurant, but their little bar where you can sit and overlook the street is not that expensive and a nice place to sit for a late afternoon beer.
The place attracts a few local business people aswell as many of the people staying at the hotel.
The place has a very colonial touch to it and it's quite nice sitting there.
Just don't sit and get hammerd there as the place is a little pricey.
Unawatuna is the best place to hang out at night, 5 miles east of Galle. The resort is right by the beach, which stretches round the bay and has a variety of places to eat, drink and party. The resort itself has food and drink and sport on telly, all under cover but exposed to the outside air.
Sadly the town was devastated in the tsunami - if you get the chance to visit, do. You'll be helping rebuild the local tourist economy.
Dress Code: None whatsoever, but woolly jumpers and sheepskin coats are not really the thing.