Although the city's history dates back to the 5th centaury B.C., it did not become the capital of the Sinhala kings until 1592, during a troubled time when many of the islanders were fleeing to the interior, away from the coastal areas which were under the European colonial rule. Although invaded briefly several times: by the Portuguese in 16th cent and the Dutch in 18th cent.; the city remained one of the bastions of Sinhala independence until it was ceded to the British on 14 February 1815, and the last king of Sri Lanka was exiled to India.

The city of Kandy, which is also known as 'Senkadagala', features the most sacred of all Buddhist shrines - the Temple of the Tooth or the 'Dalada Maligawa'.

It remains the religious capital of Buddhism and a sacred city for millions of believers. Enshrined in the Dalada Maligawa is the relic of the tooth of Buddha which has long been greatly venerated. The ceremonial high point each year is the splendid ritual of the great processions on the feast of Esala Perahera during july/august.

Kandy’s proud heritage and splendid setting has long made it a favorite haunt of visitors to the island. It has a distinctive architectural character and the town centre is a delightful compendium of old shops, buses, markets and hotels. The Peradiniya Royal Botanic Gardens, 6km outside the town, and bounded on three sides by the Mahaweli River, is the largest botanic gardens in Sri Lanka. Before colonial times it was used as a Royal pleasure garden. Udawattakelle Sanctuary, a forest reserve on the northern outskirts of the city, and the Royal Palace Park are other areas where one can take a relaxing stroll, away from the bustle of the town.

About an hour from Kandy, on the Colombo road at Kegalle, lies the ever-popular Pinnewela elephant orphanage. This government-run centre was set up to save abandoned young elephants in the wild. The daily feeding and washing rituals offer a popular tourist attraction.