We report on time-resolved photoluminescence of a free-exciton in IIa chemical vapor deposition diamond crystal. Large difference between decay times for one- and two-photon excitation processes was observed. The longest room-temperature exciton photoluminescence lifetime τ(FE)=220 ns was obtained under two-photon excitation with a photon energy of 4.7 eV. The role of diffusion and surface recombination velocity in exciton photoluminescence dynamics was studied using a new optical method based on two-photon excited time-resolved photoluminescence. The measured room-temperature value of diffusion coefficient in diamond was D=40 cm(2)/s.