This ancient temple is traditionally believed to have been founded by king Valagambahu (103 B.C). It stands on top of a hill reached by a flight of steep steps. Within an irregularly-shaped enclosure stand a Dagaba, Viharaya, Bo-tree and Poya-ge. These belong to the kandyan period and according to Madavala Sannasa it was built by Kirti Sri Rajasimha in the year 1755 A.D. The Viharaya stands on short stone pillars and is therefore called a Tampita Viharaya. According to above Sannasa the old Viharaya fell into ruins during the war in the reign of king Parakaramabahu IV of the city of Kurunegala. When Boda Mapa treacherously murdered Lord Prakramabahu the monks of the city had fled. One of the monks, namely Nagala Vanratna sami found his way to Balavita and being made aware of the history of the Viharaya decided to rebuild it. His wish was conveyed to the king, of Dadigama who. Pleases with the suggestion commanded the inhabitants of Sarasiya Pattuva to contribute towards the building to the Viharaya.