The mental health service in Sri Lanka has a long history of development. History records that formal mental health services in Sri Lanka began as asylums under the Lunacy Ordinance of 1839. After overcrowding of three asylums, the Angoda asylum was completed in 1926 with 1728 beds providing mainly acute inward care to mentally ill patients and it was upgraded to National institute of mental health (NIMH) in October 2008.

In 1839 governor Mackenzie introduced an ordinance to establish lunatic asylums	Mental Hospital Angoda was opened in 1926	In 1943 first neuropsychiatric clinic at the Colombo National Hospital

In 1943, the first neuropsychiatric clinic was established at the National Hospital Colombo. Initial mental health services were primarily in and around Colombo district in large institutions, with few facilities concentrated in the urban districts of Kandy, Jaffna and Galle. After 1960, there was an expansion in mental health services to provincial and district levels and then later to community based services.

Considering its national importance, the Directorate of Mental Health was established in year 1998 as the national focal point to execute national mental health programme throughout the country. The head of the institution is the Director/ Mental Health.

The first Director within the Ministry was Dr. G. Sankaranarayana. Since then the following successors had led the institution to its present status.

1. Dr. P.G. Mahipala (Acting Director)
2. Dr. Neil Fernando (Acting Director)
3. Dr. Hiranthi De Silva
4. Dr. Lakshmi Somathunga
5. Dr. Rasanjalee Hettiarachchi (Deputy Director / Acting Director)
6. Dr. Chithramalee de Silva (currently in position)