Spot with fantastic conditions for freestyle kitesurfing due incredible wind statistics and flat water. Nothing to do except kiting. In a few years small lagoon will be overcrowded and not worth visiting. We stayed 3 months in 2012 and really enjoyed there.
There is small lagoon (google "kitekuda" or "kappaladi lagoon"), which is best (more flat and less gusty). Only one small piece is perfect flat, not more than 5 kitesurfers at given time.
And there is big lagoon (Sethawadi lagoon). Wind is really gusty, water is not that flat. Area is much bigger, it can suit lots of kitesurfers.
There are islands to do kite trip, really nice, but far away (1 hour by boat). Nice to visit 1-2 times.
Lagoons are perfect flat near shore, tiny chop in general. Shallow from knee deep, waist deep (mostly), overhead (only small parts).
May to September almost every day. Strongest in May. We arrived in mid-April, wind was blowing every single day! 2-3 days for 12-14m², half for 9m², half for 7m². Little gusty, but I don't care, since its ideally flat.
There is wind in winter time too, season in October-November, 2-3 days in a week, thermal wind in afternoon for 12m² kite.
Wind is blowing offshore in lagoons, but since its shallow, its not a problem.
Overpriced in general. Don't expect AC, hot water, only basic things.
There are few kitecamps (KiteKuda - clients complaining, Kitesurfing Lanka - better, Unhooked — new one with good food). There are few guesthouses/hotels with prices like 35-40€ per day with full board (3 meals, which is good, since there is no food around).
There are plenty of $100+ "luxury" accommodation.
There are rooms for rent in houses for $12 (crappy houses).
Nothing. Only street food ("roti"), 2 shitty restaurants (not tasty). Its better to find good accomodation with full board and good cook. Another option is to rent a house with kitchen and cook for yourself (we did that).
Next supermarket is located in Puttalam.
"Unhooked kite camp" can serve you good dinner, if you ask them beforehand.
You can rent three-wheeler (tuk-tuk) for small distances (5-10 km). If you want to go longer distances (say go to supermarket every week), if you want to get out everyday, you can rent a van/jeep/lorry or tuk-tuk/motorbike. Its really difficult to find someone to help you with personal transport. Much easier to rent transport in Negombo, so if you plan long time stay, its better to rent vehicle there.
Roads are shit, lots of places with sand. Its better to think about jeep/truck 4x4.
3G dongle was showing good speed (up to 1 mbps) in summer 2012. "Mobitel" provider has best coverage of Kalpitiya. Its clever to buy dongle and sim card in airport, so you won't waste lots of time on arrival.
AirArabia is flying really cheap to Colombo. AirAsia flies from asian destinations too.
Nothing to do [in Kalpitiya], except going around for sightseeing. Temples, national parks, that's it.
Feel free to ask questions about the spot.