Nikini Full Moon Poya is one of the religious holidays observed by Buddhists in Sri Lanka. This holiday typically falls in August month according to the Gregorian calendar. The day commemorates the first retreat of the Buddhist community called 'vassa'. This concept of the retreat was established by the Gautama Buddha himself for his followers. Vassa, often referred to as 'rains retreat' is a period of intensive meditation and study, where Buddhists spend their time contemplating the teachings of Buddha.

During Nikini Full Moon Poya Day, thousands of devout Buddhists pay a visit to temples across the country to participate in religious activities. The day begins with observances of 'Sil' - the eight precepts that lay people are expected to follow. Other activities include meditation sessions, dhamma sermons, Bodhi poojas, and pirith chanting - a practice believed to bring good fortune and protect from misfortune. Ritual meals offered to monks and the lighting of oil lamps are also part of these religious proceedings.

Public holidays in Sri Lanka are largely controlled by the lunar calendar. On each full moon (known as Poya), the selling of meat and alcohol is banned. Nikini Full Moon Poya Day is no exception and the country's liquor shops, slaughter houses as well as several restaurants remain closed out of respect for the occasion. The day encourages contemplation, self-reflection and discipline as Sri Lankans honor one of Buddhism's significant historical events.