Is staying inside Galle Fort worth the price or should I stay in Unawatuna?

It really depends on what kind of morning you want to have. If you stay inside the Fort, you get to experience the streets at 7:00 AM before the day-trippers and tour buses arrive. It is incredibly peaceful and feels like stepping back in time. Yes, it is pricier, but you are paying for the ability to wander out of your door and be at the lighthouse in two minutes. The dinner scene is actually very sophisticated now with places like Church Street Social and Aqua Forte staying busy well into the evening.

I personally prefer staying in Unawatuna and taking a tuk tuk into the Fort for the afternoon. A ride only takes about 15 minutes and costs very little. Unawatuna has much more of a "vacation" vibe where you can go for a swim right in front of your hotel, which you cannot really do in the Fort due to the rocky ramparts and harbor. If you want to save money for better meals or excursions like whale watching, stay on the beach and just visit the Fort for a few hours at a time.

One thing to consider is the heat. The Fort is a stone labyrinth and can get very hot and humid mid-day. If you stay inside, you have the luxury of retreating to your air-conditioned room for a nap when the sun is at its peak. If you stay in Unawatuna, you are more likely to spend the whole day out, which can be exhausting. For dinner, do not miss A Minute by Tuk Tuk at the Old Dutch Hospital for the ocean views, or Coconut Sambol for an authentic curry buffet that is much cheaper than the high-end boutique spots.