It is awarded by the Gratiaen Trust, which also awards the Gratiaen Prize, for the translation of Sinhala or Tamil language creative writing into English.
Michael Ondaatje, who initiated the Gratiaen Prize, had also wanted to promote Sri Lankan writing in the local languages to an international audience.
He had also hoped it would foster cross-cultural understanding amongst the various ethnic groups within the country.
[2] The prize is named after his friend Henry Alfred Ian Goonetileke, the first chairperson of the Gratiaen Prize, former Director of the University of Peradeniya library, and bibliographer.
The award is open to Sri Lankan authors who are resident in the country.