Short answer: It depends on what you want. Water Garden Sigiriya is a high-end, full-service luxury villa resort with dramatic water-garden design, private plunge pools, a spa and easy access to Sigiriya — it’s best if you want comfort, resort facilities and views of Sigiriya Rock. Small boutique properties around Dambulla (for example Diyabubula and similar hides) are quieter, more intimate and art- or nature-focused — they suit travellers who prioritise privacy, authenticity and a smaller-scale, off‑the‑beaten‑track experience. (watergardensigiriya.com)

Quick comparison (what matters most)

• Location and sightseeing

  • Water Garden Sigiriya: located in the Sigiriya area with direct sightlines to Sigiriya Rock and easy transfers to the rock fortress and cultural‑triangle sites. Good if Sigiriya is your main reason to visit. (watergardensigiriya.com)
  • Boutique Dambulla area properties: closer to the Dambulla Cave Temple and central for exploring Matale/Dambulla; some are very private and tucked into jungle or farmland. Better if you want to base yourself near Dambulla’s temples or prefer quieter countryside access. (asiangeographical.com)

• Property style & size

  • Water Garden: about 30 purpose‑built villas, contemporary design by a noted architect, resort facilities (spa, main restaurant, activities). Feels polished and designed for luxury stays and couples/families wanting amenities. (watergardensigiriya.com)
  • Boutique resorts: often 5–20 rooms/villas, individually styled (some artistically designed), much more intimate and characterful; service tends to be personal but facilities more limited. Diyabubula is an example of a tiny art hideaway near Dambulla. (en.wikipedia.org)

• Amenities & experiences

  • Water Garden: private plunge pools in many villas, full spa, larger restaurant options, concierge‑led excursions (safaris, climbs, guided tours). Good if you want convenience and on‑site services. (watergardensigiriya.com)
  • Boutiques: stronger on bespoke experiences (local art, guided nature walks, highly personalised service) but fewer on‑site luxuries like big spas or multiple dining venues. (en.wikipedia.org)

• Price/value

  • Water Garden positions itself as a premium resort; rates tend to reflect full‑service luxury.
  • Small boutique stays can be comparable or cheaper depending on season, but value differs: you may trade some facilities for exclusivity and personality. (Check current rates for your dates to decide.)

Which should you pick?

• Choose Water Garden Sigiriya if: you want modern luxury, private plunge‑pool villas, a resort with full facilities, easy access to Sigiriya Rock and organized excursions. (watergardensigiriya.com)
• Choose a boutique Dambulla property if: you prefer a very small, intimate, characterful place (artistic/jungle hideaway), quieter surroundings, and closer proximity to Dambulla Cave Temple or a more rustic/local feel. (en.wikipedia.org)

If you want, I can:

• Compare Water Garden Sigiriya to 3 specific boutique hotels near Dambulla (rates, exact distances, pros/cons), or
• Pull up current room rates and availability for your travel dates.