It was built in 1841 by the British colonial government under Governor Campbell.

It is overcrowded with about 1700 detainees exceeding the actual number that could be accommodated.

Following the attempted military coup in 1962, the arrested military and police officers were remanded pending trial in a special section at Welikada prison called the Magazine Section.

To guard these officers, a special security detachment called the composite guard was selected from the Ceylon Light Infantry, with Major A Hulangamuwa in charge.

In November 2012, 27 people died in clashes between inmates and prison guards.