Since Sri Lanka was under British rule, Buddhism and Buddhist culture were almost in the dark. But during the 19th century, an American by the name Col. Henry Steel Olcott realised the value and vision of the Buddha's teachings after hearing the famous Buddhist debates held in Gampola Panadura, Udanvita, Baddegama, and Urugodawatte. Anagarika Dharmapala, Venerable Mohittiwatte Gunananda Thera, Col
. Henry Steel Olcott and Venerable Hikkaduwe Sri Sumangala Nayaka Thera inaugurated some Buddhist schools, like the Maradana Buddhist English School (later Ananda College), Dharmaraja College, Kandy and Mahinda College, Galle. Some eminent Buddhist leaders in Kotte during that period, too realising their responsibility towards Buddhist activities set up a school by the name of Kotte Bauddha (Buddhist) mixed school on November 4, 1880. This was the primary step. Educational Facilities
On January 1, 1890, Ven. Embulgama Wimalatissa Thera along with eminent leaders in the Dayaka Sabha the Rajamaha Viharaya, Kotte, headed by Thepanis Perera Appuhamy and a few others, further enhanced the educational facilities of the school and renamed it Kotte Bauddha (Buddhist) English Mixed School And this was the beginning of Ananda Sastralaya. It was located in a plot of land transferred by the Raja Maha Viharaya. The first headmaster was C. Ranasingha, for the period 1890-1903. Jayatilaka, (later Sir D.B.) was the head master from 1903 to 1905. There is evidence that Col. Olcott had graced the occasion twice as the chief guest in the years 1903 and 1904 at the school's prize giving. Then it became "Jayawardena Shasthra Sh***va" in 1910, when D.J. Jayatunga was the headmaster, for the period 1905 to 1922. This is the era that the Buddhist Theosophical Society (B.T.S.) was founded for the rehabilitation of Buddhist activities and for the proper administration of Buddhist schools. They took over the administration of Jayawardena Shasthra Sh***va and renamed it as Ananda Sastralaya, Kotte. They appointed S.P. Perera who was the head master of Ananda College as the headmaster at Ananda Sastralaya. After his retirement in 1934 the BTS appointed Dr. E.W. Adikaram, as head master. He was a distinguished scholar and had obtained his degree from Oxford University. He organised Ananda Sastralaya by adding laboratories, a main hall, hostel and a play ground. He left the school in 1934, and Bernard Wickramasingha succeeded.