Hi avistu,
Starting with the cuurency and accomodation costs.
I just checked and Indian rupee is equal to 2.42287. Roughly 2 1/2 Sri Lankan to 1 Indian.
So, accomodation costs.
It's still possible to find decent rooms for about 600 rupees upward but it does depend on the locality. Anywhere near the airport or anywhere near the main tourist areas are more expensive. Probably count on about 1000 SL ( 4 + indian ) for a decent room with fan and mozzie net.
Transport.... You're right. Many travellers use a car and driver for at least part of their tour.
This is not because there,s a lack of public transport. It's usually because, travelling around on buses is slow by compoarison so visitors on a limited time can get to see more by using a car and driver.
Car and driver should cost you about, roughly, 6000 rupees a day and that would include the driver, the air-con vehicle and the fuel.
Trains are excellent ... Colombo is the hub and from there you can get up to the cultural triangle, South through the hill country and south from Colombo down the west coast and part way along the south coast.
No pre-booking required for trains unless you want the 1st class observation car.2nd and 3rd class, just turn up at the atstion, buy your ticket and climb aboard.
Where the trains don't reach , the buses do.
They are extremely cheap, crowded, manic and fun.
Route / Itinery.
Most travellers seem to go around the attractions in a clock-wise direction and I think thats the best way. Suffer the heat of the cultural triangle while seeing the ancient cities etc, then cool off in the hill country and the mountains, finally dropping down to the south coast for a little R&R on a beach somewhere.
Nearsest town of any consequence, to the airport, is Negombo.
Frm the airport you can get a free shuttle bus into the small town of Katunayake. Next to the airport. From there a bus into Negombo.
There's plenty of guest houses along the Poruthota Road and Lewis Place, backing onto the beach if you decide to stay over a night in Negombo.
From Neombo, you can get a train north up the coast to Puttalam, then a bus from there o Anuadhapura.( ancient city ruins and Bodhi tree temple.)
From there travel east, taking in Mihntale, Ritiigala Aukana and Polonorua.
After Polonorua, climb Sigirya, visit Dambulla Cave temples and so on to Kandy.
All of those places ae OK to reach on the bus but Ritigala is quit a good stomp down a tack to get to the site from the road.
Kandy you'll probobly need a good rest, enjoy the city,markets etc and visit the Peradeniya Botanical gardens, Temple of the Tooth, etc.
After Kandy, get the train south through the hill country. Plenty of place to stop off with good trekking country.
Two that I like ad I'm sure most people like are Haputale and Ella. Both surounded by mountains with fantastic walks, views, water falls, etc.
Between the two of them is a town called Bandarawella. A bus starts from Bandarawella that goes all the way to the south coast. Once you've had your fill of the hills you can get this bus, from Bandarawella, where it originates or Ella, where it stops to pick up passengers, dow as far as Matara.
Matara is a small city on the south coast... Great beaches a short distance either side of the city. Dikwella and Tangalle to the east and Mirissa and Unawatuna to the west.
Matara is also the end of the train line that runs from Colombo , down the west coast and part way along the south coast, so easy to eventually get back to Colombo on the train or use it to hop along the coast from beach to beach.
Rod.