There is evidence that the general vicinity of Kataragama had human habitation as far back as 125,000 years ago. Mahavamsa the historical chronicle written in the 5th century CE makes reference to Kataragama village. It is said to have functioned as the capital of number of kings of the Ruhuna (Southern) kingdom.

Kataragama is now a multi-religious sacred town being venerated by Buddhists, Hindus as well as Muslims with their Islamic Mosque within the temple complex.

The shrine at Kataragama in honour of Kataragamadevio (god Kataragama) who Buddhists believe as the guardian deity of Sinhala Buddhism, had also become a popular place of pilgrimage for Hindus from India and Sri Lanka by the 15th century.

The temple holds its annual festival in July to August in celebration of the God’s courtship and marriage to a Veddah (original inhabitants) princess.  The festival is attended by large numbers of devotees from India and Sri Lanka as well as foreign tourists to watch the procession and the many rituals including fire walking.