Hikkaduwa was one of the first beach resorts in Sri Lanka on account of its location and the fine coral that you can see if you go on a trip on a glass bottomed boat.
However, now it is too over developed. For a couple of miles there is hostel upon hostel and some plush hotels. Prices are much higher than elsewhere and the beach is fine but not as good as elsewhere. Well, you don't really have space to appreciate the beach as hustlers and vendors will interrupt your contemplation, often telling you that they can score you some grass or get you a nice girl. You can still go on the glass bottomed boats but make sure that you are not damaging the coral.
On the upside there are all the banking and internet facilities that you need and there is more nightlife than elsewhere in Sri Lanka. But, if you want to go to a nice beach resort, go to Unawatuna, Mirissa or Tangalle rather than here.
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