The history of Buttala goes back to the time ofKing Dutugamunu in the 2nd century BC, when it was known as Guthala. TheMahavamsa chronicle of ancient Sri Lanka states that when Dutugamunu's army passed through Buttala en route toRajarata in the north to wage war onElara. The names of many places are derived from ancient times, often from the names of the generals of armies, as in the case of Buttala.[2][3] Buttala faced minorearthquakes in February 2023.[4] The famousyudaganawa stupa located in just two kilometers away from town.
Buttala is the home of the largest sugar mill in Sri Lanka,Pelwatte Sugar Industries PLC, which was established in 1981. The company employs approximately 4,200 employees and over 300,000 sugarcane farmers.