We stayed here in May 2013 for 3 nights during a tour of the North & East of Sri Lanka. The location of this Resort at Kankesanthurai (KKS) cannot be faulted on the Northern most shores of Sri Lanka with a fantastic private beach which affords unsurpassed views of both sunrise and sunset. The Hotel itself was comfortable with very spacious and clean A/C rooms and bathrooms. The water in the bathrooms did smell bad though. The food was good but selection a bit limited. I think we had grown rather tired of the ever present "kata sambol" which unfortunately was not that edible! The staff were very helpful if somewhat formal, as is the whole place. That perhaps is not surprising given the military background of the resort (see below).
This resort will appeal more to some than others. Why? Well for one it is some distance from the main hub of activity in Jaffna. Second it is within high security military zone. The downside is there isn't much else within reach. The plus side is that you are in a very secure location. However it does lead to the bizarre contrast of gazing out on a gorgeous sunset while listening to the "last post" being sounded and watching armed soldiers wandering around!
If you want a quiet scenic location away from the hubbub of Jaffna and are happy with staying within a rather formal environment then this is certainly for you. May appeal more to Sri Lankans more than Overseas Tourists.