This sacred Buddhist site, popularly known as the city of Senkadagalapura, was the last capital of the Sinhala kings whose patronage enabled the Dinahala culture to flourish for more than 2,500 years until the occupation of Sri Lanka by the British in 1815. It is also the site of the Temple of the Tooth Relic (the sacred tooth of the Buddha), which is a famous pilgrimage site. It was declared a world heritage site by UNESCO in 1988.

Kandy is very popular due to the annual procession known as the Esala Perahera, in which one of the inner caskets used for covering the tooth relic of Buddha is taken in a grand procession through the streets of the city. This casket is taken on a royal tusker. The procession includes traditional dancers and drummers, flag bearers of the provinces of the old Kandyan kingdom, the Nilames (lay custodians of temples ) wearing their traditional dresses, torch bearers and also the grandly attired elephant. This ceremony which is annually held in the months of July or August, attracts large crowds from all parts of the country and also many foreign tourists.