Near the lake, the Kandyan Arts and Crafts Association showroom displays and sells traditional crafts made by local artisans. The quality is generally higher than the tourist shops on the main street, and the prices are correspondingly fair without being inflated. The lacquerware, hand-beaten silverware, and batik textiles are the best buys; the carved masks have become touristy but the workmanship on the better pieces remains good.
Worth a visit even if you're not shopping, as it's one of the few places in Kandy where you can watch craftspeople at work. Demonstrations of lacquerwork and silverwork are sometimes available.