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The Urban Development Authority was established in 1978 under the Urban Development Authority Act No. 41 of 1978. Its main objective was to formulate, implement, and develop integrated plans for development economically, socially, and physically for the areas declared as "development areas." In order to get the opinion of the minister if any area is suitable for development according to section 3 of the act, that area may be declared as a development area, and it must represent the specific boundaries for the development areas. Accordingly, the Procedure for Preparation of Development Plans declared as development areas under Act No. 41 of 1978 as amended by the Urban Development Authority Act No. 4 of 1982 has been given under sections 8A to 8J.
Accordingly, the Municipal Council of Hambantota has been declared as a declared area according to the followings five stages:
The Municipal Council of Hambanthota which has been declared by Gazette Notification No. 38/16 dated 01.01.1979
The Gazette Notification No. 223/16 dated 17.12.1982 issued by the Sri Lanka Coastal Law gazette the area comprising the 1 km boundary towards the mainland from the middle treadmill.
Gazette notification No. 747/2 dated 29.12.1992 for the Matara-Kataragama railway line
Gazette notification of the area declared under the Ruhunapura Program dated 26.06.1999 No. 1090/5
The Gazette Notification No. 1639/12 dated 02/02/2010 in the Gazette of the Municipal Council of Hambantota which is published by the Gazette Notification dated 02/02/2010
In 2007, the Urban Development Authority prepared a development plan for the Hambanthota Urban Council area, and the plan has been published by the extraordinary gazette No. 1499/33 dated 01.06.2007. This development plan is effective for the period of 2007 to 2020. Since this development plan consisted of only two Grama Niladhari Divisions in the Hambanthota East & Hambanthota West areas, covering 9.19 sq. km of land in the Hambantota Reborn council area.