Buddhists believe the temple to have been hallowed during the third and final visit of the Buddha to Sri Lanka, eight years after gaining enlightenment.

Under the Dutch empire, however, there were new gifts of land and under the patronage of King Kirthi Sri Rajasingha the temple was rebuilt.

Buddha's second visit to Nagadeepaya, Sri Lanka was in the fifth year of enlightenment to settle a dispute between two Naga Kings, Chulodara and Mahodara over the possession of a Gem Studded throne.

The Naga King Maniakkika- Ruler of Kelaniya who also listened to Buddha's Dharma sermons pleaded for a souvenir to worship.

King Maniakkika in turn constructed a Cetiya (Stupa) covering the Gem studded Throne in Kelaniya for thousands of devotees to worship and invited Buddha to visit the holy site.