Dayaratne was born on 20 February as the eldest of the family with six siblings. His father, R. M. H. Bandara from Hanguranketha, Kandy worked as a store manager at Geoffrey Brothers, Colombo. His mother, K. D. Nandawathi was a housewife. He started primary education from Terrence N. De Silva Maha Vidyalaya, Kolonnawa. He used to watch films with his grandmother K.A. D. Magillin. Because of this he had a passion for acting since he was a child. His family moved to Kirulapone when Dayaratne was about 12 years old. Then he went to Bhadrawathi School in Polhengoda where he met his mates, Nihal Silva, Ashoka Senarath Mudalige, and Sanjaya Leelaratne. They all had the passion of acting. He later attended to Thurstan College to complete Advanced Level.

 

Dayaratne was married and has three daughters – Jinali Piyasari, Gayathri Indeewari and Chathrika Odini.