Visakha Vidyalaya was established in 1917 by the late Mrs Jeremias Dias as the Buddhist Girls College in a house called 'The Firs' in Turret Road, Colombo, Sri Lanka. It was the desire of Mrs Jeremias Dias to train the school girls according to the Buddhist moral values and principles. In 1927 it moved to its present premises in Vajira Road, Colombo and was named Visakha Vidyalaya by Lady Herbert Stanley the wife of the Government of Ceylon at that time.

• Science subjects were introduced to the curriculum in 1946, for the first time in a girls school in Sri Lanka.
• The school's motto is from the Alavaka Sutta in the Sutta Pitaka of the Tripitaka. When the yakkha Alavaka first confronted Lord Buddha, he threatened to exterminate Lord Buddha unless He, Lord Buddha were to answer all his questions. One of the questions asked was "Kathansu Parisujjhati" (how is one cleansed) to which Lord Buddha replied, "Pannaya Parisujjhati" (by wisdom is one cleansed).