Nalanda College was established by P. de S. Kularatne as an offshoot of Ananda College on 1925. It was an era when the demand for students to enter Ananda College was immensely high. As a result, in 1923 the then principal of Ananda College Mr P. de S. Kularatne leased the bare land adjoining to Ananda College playground located in Campbell Place and moved some classes of Ananda. In 1925 that Mr Kularatne registered this Ananda as a separate school named Nalanda.