"The atmosphere is incredible; everyone has been so friendly," says Lisa Littlewood, a DJ from Scotland who will be in action Friday night at a rave party.
"Things are just building and building."
UK DJ Paul Mendez says despite the problems of an internal conflict in the island, he has been made welcome and safe, and hopes that music could be a unifying force.
"Music is what brings us together," he says.
Sri Lanka's deputy tourism minister Faizer Mustapha says the event has been largely financed by private sector sponsors.
"This is positioned as an annual event, which will bring long-term benefits."
MTV India VJ Anusha Dandekar who flew down to cover the festival says she has a special affinity to Sri Lanka.
"I was born in Africa but there was a Sri Lankan neighbor next to us, and my parents named me after her," she says.
The festival got off the ground with a warm up parade on Wednesday afternoon followed by a night of traditional dances at the beach, watched avidly by throngs of local and foreign tourists who have flocked to the town.
On Thursday a drum festival would keep the beat going.
On Friday DJs Littlewood, Paul Mendez from USA and Jorge Jamarillo from Denmark would kick off a rave party which will be continued Saturday with Micheal Parsberg of Denmark, Master J of UK with Godwin Pereira, Fredric Gallilino and Glamslam dancers joining in.