Compared to other tourist destinations, here again Colombo accommodation is expensive - Sri Lanka is just not competitive. Room was simple, single bed, ensuite, A/C, fan, quiet, clean, relatively dark with a view of an alley full of rubbish. No TV. Missed a minibar/fridge. Biggest disappointment was USD 4 an hour for slow Wifi (They could have had me as a repeat customer with free, strong Wifi.) Staff was friendly and helpful. Market across the street was handy. I saw no "arcade" and was not even aware that there was a night club in the building. About an hour's walk from the center of Colombo. After 2 days I moved around the corner to the Pearl City Hotel for slightly more (price negotiable) and much better facilities - even an ocean view!
