Sri Lanka offers a good bunch of interesting souvenirs. Masks, leather goods, batiks, wood curving and metal ware are a few to name.
Lakmedura has a diverse collection of items at decent prices. Masks, batik, wood curving etc. are good in Lakmedura, but the leather collection was found to lag behind the rest.
Laksala seemed to have almost the same quality of products as did Lakmedura. However, the prices in Laksala were a bit cheaper. The Gurulu masks in Laksala were the best among all souvenir shops; had better curving as well as intricate paint job. At a higher price, of course. Besides masks, they had good collection of metal ware.
There is a certain Kandyan Arts Association in Kandy. Its located by the lake, next to the Temple of Tooth. This place had the largest collection of wood curving as well as metal ware. The metal ware were exceptionally better than the other shops. Their collection of wood curving was the largest, but almost the same quality as others.
Best collection of leather goods were found in the souvenir shops along Lewis place in Negombo. Not all of these are genuine 100% leather. But the prices can be negotiated to compensate with the shortcoming.
Although batiks are somewhat ubiquitous, tasteful design or color combination is a bit rare. A shop in Negombo (forgot the name) had the best batik; a small but tasteful collection. Pretty good collection of batiks were also found in souvenir shops along the DS Senanayake Street, near the Temple of Tooth.