view from Sun'n'Sea guest house balcony
The big plus is Unawatunas' close proximity to Galle, just a few minutes by tuk-tuk. You'll save youself a great deal of money by staying in Unawatuna and most probably have more local fun.
Unawatuna [map of Sri Lanka]
The Frangipani Tree (Talpe near Unawatuna) http://www.thefrangipanitree.com/
Secret Garden (villa/guest house)
Sun 'N' Sea (guest house/hotel) more
Sun 'n' Sea is a quirky local guest house, built on top of a rocky outcrop, directly on the beach at Unawatuna. The rice & curry lunch is unbeatable!
Thambapanni Retreat http://www.thambapannileisure.com/
Three Fishes http://www.closenburghotel.com/closenburg/three-fishes-budget-beach-accommodation.html
Unawatuna Beach Resort http://www.unawatunabeachresort.com/