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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 "Demodara Palama" (1995) 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. Priyasad attended the Holy Family Convent, Bambalapitiya up to the ordinary level (O/L) examination and completed her pre university studies at the Royal Institute in the Maths Stream. Thereafter she joined The Open University of Sri Lanka and is currently studying Engineering for her Bachelor's degree. She is also doing her diploma in Media and Mass Communication at the University of Sri Jayewardenepura.