Hope you had a great time. We just spent a year in Kandy & enjoyed the terrace at the Amaya Hills Hotel--spectacular view! Bar food is served on the terrace but their restaurant is first class, also with views but from behind windows. Second choice, for location more than menu, was inside the Queens Hotel--Chinese Sri Lankan food with a lovely view of the lake. Third choice was the Swiss Hotel on the east side of the lake It's very popular with locals and visitors, interesting old style decor, good buffet.
Some suggestions that were given to us by someone from Sri Lanka before a recent trip:
Terrace at the Mt. Lavinia Hotel (service is a bit slow but the view of the sunset is breathtaking!) Also, there is a restaurant located on the hotel's private beach called Seafood Cove.
A unique Sri Lankan restaurant called Nuga Gama located at the Cinnamon Grand Hotel on Galle Road in Colombo 3.
A Sri-Lankan fusion restaurant called The Gallery Café and Bar located at 2 Alfred House Road , Colombo 3.
Authentic/basic S/Lankan fare can also be found at a restaurant called Raja Bojun located directly opposite the Cinnamon Grand on the "sea side".
If you want to check out the artsy crowd you can drop in at the Barefoot Café which serves light meals and has live jazz music on Sunday afternoons