Canberra was brighter all round as Hindus celebrated Diwali, the festival of lights, by lighting candles, turning all their house lights on and giving gifts of sweets, gold and new clothes.

Diwali is often likened to India's Christmas and is celebrated around the world. India-Australia Association of Canberra president Raj Satija said it was a celebration steeped in history, religion and a spirit of giving.

''Why it's called the festival of lights is it enlightens our lives,'' he said.

He said there were several rituals followed around Diwali time, including cleaning, sometimes painting houses and turning on lots of lights for the night to commemorate the return of the victorious Lord Rama from exile and to invite the goddess of prosperity, Lakshmi, into homes.

''The third reason for putting the lights on is to pray to god saying 'look, whatever bad things that we've done, forgive for us for that and enlighten our lives so that we progress in the right manner','' Mr Satija said.

At the Hindu Temple and Cultural Centre in Florey, celebrations included prayers to Lakshmi, dances and tributes to Lord Rama and his wife, Sita.

It might be the festival of lights but that doesn't mean going home any lighter around the waist - Mr Satija said it was traditional to offer food to the gods and then eat it together, which included a lot of sweets to celebrate the ''sweetness in life''.

The festivities will continue on Monday night in Civic with a special ACT government reception hosted by Multicultural Affairs Minister Joy Burch.

''As Canberrans, we are privileged to be able to share in the rich traditions and ceremonies of so many cultures throughout the year and among the most fascinating is Diwali,'' Ms Burch said.

''Although Diwali is a Hindu festival, it is celebrated by people of all backgrounds and today the festivities are observed all around the world.''

The event will include a dinner, traditional dancing and a lighting of the lanterns.