This ancient university was established by Kalikala Sahittya Sarvagna Pandita ParakramaBahu, the Second (1235–1271 AD) in the Dambadeniya period.

Meanwhile, the monastic institution of higher education in Sabaragamuwa had been in the custody of Deva Pathiraja, the royal agent to King Parakramabahu, the Second.

The concept was triggered by social problems faced by the younger generation, in addition to several committee reports which made recommendations to the government on youth unrest.

Based on these reports, the government decided to open new avenues for the younger generation by means of establishing diploma-awarding bodies, which were to be affiliated with several national universities.

14 of 1992, the SAUC was ceremoniously declared open by His Excellency R. Premadasa, then President of Sri Lanka, on 8 February 1992.

Guided by his motivation, the academic, administrative and non-academic staff, students, and the nearby communities actively contributed towards the development and promotion of SAUC into a national university.

In the future, a separate new building will be constructed for the Faculty of Agricultural Sciences to hold its growing student population.

Administratively, SUSL belongs to the Imbulpe Divisional Secretariat and to the Ratnapura District in Sabaragamuwa Province.

SUSL was ceremonially declared open on 2 February 1996 by Her Excellency Chandrika Bandaranaike Kumaratunga, the president of Sri Lanka.

The organizational structure represents a number of chief administrative positions such as chancellor, vice-chancellor, deans and many others, who plan for future development.

The president of Sri Lanka appoints the vice-chancellor out of three nominations made by the University Council for three years.

The vice-chancellor is also the chairman and ex-officio member of the Council and the Senate of the University and is responsible for the maintenance of discipline and academic work.

[11] [12] The university was awarded some 155.5 million rupees in 2004/5 for improving the relevance and quality of undergraduates in higher education.