This area belonged to the Digamadulla Kingdom which was started by Prince Dighayu in the 4th century BC. All though the beginning of this monastery is not documented, Ven Ellawala Medhananda Thero states that the history of its monastery is as old as the Digamadulla Kingdom.
Lost in history, covered by a thick jungle infested with wild animals, exposed to the elements for thousands of years, this monastery was brought back to life in 1964 by a young brave bhikku called Kalutara Dhammananda, (incumbent high priest today) who travelled through the thick jungles and cleared the area with the assistance of Buddhists in the area.
This hermitage came to prominence due to the relics unearthed during the excavation of the original stupa. Among them was a 4 inch gold casket with 3 golden lotus flowers standing on its stems with carefully placed relics on each of them. The centre flower was the tallest and two bo leaves on the other two stems had the names “Sariputha” and “Maha Moggalana” inscribed on them. How these relics of the two chief disciples of Buddha came to Sri Lanka is not known, but it is believed they would have been given by a private donor who probably had them in custody for some time. The relic casket shows characteristics of 5th century work but the inscriptions on the golden bo leaves are said to be belonging to the pre-Christian era.