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sri lanka....advice please!

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I am travelling to sri lanka in february for close to 20 days. i have been to India a couple of times and other asian countries. My questions are these: do i really need a car and driver to tour around the country and if so, for all of the tour, or do you recommend it for only part. Also, what is the scoop with booking hotels? I've read that i shouldn't book rooms directly from the hotels because they are way more expensive. Is that true, and if it is, what do you recommend? Thanks for your help!

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