It was built during the reign of King Kavan Tissa, Prince of Ruhuna, (2nd century BC) containing the Lalata Dathun Wahanse (sacred forehead bone) of Buddha.

According to Richard Leslie Brohier, the Seruwila region was a vast swamp or villu where the flood waters of the Mahaweli Ganga collected.

It is believed that three viharas existed at this particular spot built during the periods of three former Buddhas named Kakusandha, Koṇāgamana and Kassapa with their relics enshrined.

[citation needed] The King Kavantissa could make use of the loyalty and respect of the Sinhala nobles and the populace had for Buddhism to win over Princes Siva and Abhaya, his ally.

After the construction of the stupa King Kavantissa unified the entire portion of the country to the south of the Mahaweli and Kelani rivers then establish his capital at Mahagama.

[citation needed] According to the Vallipuram Gold Plate, King Vasabha (67 - 111 CE) appointed a minister named Isigiraye to this region.