We arrived during the Full Moon festival and the way was blocked by a procession of ceremonial elephants! This place is right next to the Temple of the Tooth, so there's always hussle and bustle outside. And it's right in the middle of town. Saw one review complaining of bedbugs; we had no problems like that. Shared bathroom is a bit basic but clean. Food was nice. The balcony is a comfy place to chill out, chat and watch the pilgrims pass by. I liked it; good budget travellers hostel.
And course it is crazy cheap! We couldn't believe the low price; 1800rupes on a festival day!