Priyasad was born in Colombo, Sri Lanka. She is the first of three daughters for Dinesh Priyasad and Shirani Priyasad. Her father Dinesh is an eminent film director who is considered a pioneering figure in the Sri Lankan film industry bringing in various technologies and graphics to the country's industry. His most famous project being the 1995 Demodara Palama a high action movie starring Gamini Fonseka.Dinakshie's mother has produced films that were directed by her father. Dinakshie has two younger sisters Sheshadre Priyasad, born 2 December 1991 and Shanudrie Priyasad born 8 September 1997. Following her elder sister, Sheshadri has entered the industry making her main role debut in the 2011 film Challengers (Yawwanaye Babaru Api).
