In the 19th century, education in Sri Lanka was dominated by the Christian missionary societies. Buddhist, Muslim and Hindu children had little choice to study in Christian schools; such an education was the best qualification for a job because of government preference for Christian schools. There were some vernacular schools and, although they were funded by government grants and supported by philanthropic neighbours, they were limited in number and resources. In 1836, the Colebrooke–Cameron Commission recommended that a ministry be appointed to manage education. As a result, the government took over the provision of education and Colombo Academy was founded in the capital. The late 19th century saw the founding of several new independent schools, mostly linked to the Anglican church, but provision for education of non-Christian, non-English-speaking children remained patchy.

On 17 May 1880 Col. Henry Steel Olcott disembarked at Galle port determined to change this situation.Col.Olcott was the founder of the Theosophical Society and, whilst in Sri Lanka, he took Five Precepts at the Wijayananda Viharaya. He was then declared to be a Buddhist, although he had claimed himself to be so even before he left the route to Colombo, he participated in a welcome ceremony at Ambalangoda, where he discussed the necessity of a Buddhist school. In the face of spreading Christian education in the area, Dodanduwe Piyarathana thero, Katudampe Malalankara thero, Ambalangoda Sri devananda thero and others established the Ambalangoda Sugatha Sasanodaya society.

On 19 th January 1887, the society opened Vidyalankara Native-Language Buddhist Boys' School in a rented room with 19 boys on roll. The first principal was Mr.Ginige Mendias De Silva. The Sugatha Sasanodaya Society faced serious problems in increasing student numbers, owing to lack of space. The society assigned land called "Ambagahawatta" to the school for 20 years by a deed. The school continued in temporary huts.

In time, the society established two separate and additional schools, one for Buddhist girls and the other an English language school. The society, now with three schools to maintain, again faced financial problems. Financial assistance was denied  by the government and so, in 1899, the schools were handed over to the Buddhist Sasanodaya company whose patron was Col.Henry Olcott. As the school was situated in the land of Ambagahawatta people, it was called Ambagahawatta Pasala.

Commerce subjects were first taught at the school in 1966 and 47 pupils were qualified in the first cohort. Though the school was approved to teach science classes by mid-1977, they did not begin immediately owing to a lack of trained teachers. Science classes were begun two years later with 20 students.Mr.W.M. Sumith was the first student to enter the university in the science stream in 1982, entering the dental faculty. He is said to have used the laboratory at Dharmasoka College since Devananda College had no laboratory. Under the government's National School Concept, Devananda Vidyalaya became a national school on 15th March 1994 under the principal Mr.Darmasiri Ginige.

1887 - 1887 Mr. Ginige Mendiyas De Silva
1887 - 1887 Mr. H. A. M. Jayawardhane
1887 - 1903 Mr. Ginige Mendiyas De Silva
1903 - 1910 Mr. H. A. M. Jayawardhane
1910 - 1914 Mr. A. G. Arnolis Perera
1914 - 1916 Not Fond
1914 - 1916 Mr. A. C. Narangoda
1924 - 1930 Mr. H. K. M. De Silva
1930 - 1934 Mr. Alen Peter De Silva
1934 - 1954 Mr. Danister Thomas Pranandu
1954 - 1958 Mr. H. L. Fonseka
1959 - 1964 Mr. E. P. De Silva
1965 - 1969 Mr. K. H. Wilmart O. De Silva
1970 - 1972 Mr. M. M. Sirisena
1973 - 1977 Mr. N. M. Gundasa De Silva
1977 - 1979 Mr. H. S. Lakshman De Silva
1979 - 1988 Mr. W. T. D. De Silva
1988 - 1990 Mr. W. H. Pacy Noyal
1990 - 1990 Mr. P. H. Jayasena
1990 - 1990 Mr. D. J. K. Siriwardhana
1990 - 1991 Mr. M. W. S. Sugathapala
1991 - 2000 Mr. Darmasiri Ginige
2001 - 2002 Mr. T. Ajantha Ranaweera
2002 - 2011 Mr. H. M. Sumathipala
2011 - 2017 Mr. Indrarathna Kaluarachchi
2017 - 2018 Mr. M. Upul Jaya Sri De Silva
2018 - 2020 Mr. S. Sooriyaarachchi