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A development plan is a legally recognized document that guides development activities for an urbanized or urbanizing area identified as an “Urban Development Area.” This 10-year program outlines how development operations in the region should be carried out by examining the physical, social, economic and environmental aspects of the area and creating plans in a methodical manner with the involvement of stakeholders. The Urban Development Authority has been empowered by Section 8 "A" of the Urban Development Authority (Amendment) Act No. 04 of 1982 to prepare a development plan for an area declared as an urban development area by the relevant Minister in charge of the subject matter in accordance with the powers given to the minister at Urban Development Authority Act No. 41 of 1978 by the National Council of State. Thus, on November 26, 1980, Gazette Notification No. 116/6, declared a portion of the Hikkaduwa Urban Council area as Urban Development Areas. Later, on June 11, 1982, Gazette Notification No. 196/14 declared Thiranagama and Narigama Grama Niladhari Division of Hikkaduwa Urban Council Area. After, on December 17, 1982, Gazette Notification No. 223/16 declared the 01 km of coastline within the Hikkaduwa Urban Council jurisdiction as an Urban Development area. On August 30, 2012, the entire Hikkaduwa Urban Council territory was declared as an Urban Development Authority territory by Gazette Notification No. 1773/34. Accordingly, the Urban Development Authority's Development Plan (2010–2030) for the Hikkaduwa Urban Area was released by the Minister of Urban Development and Sacred Land Development in 2010. But in order to guide the area's economic, social, environmental and physical aspects toward sustainable development, it has become necessary to update the 2010–2030 Development Plan created for the Hikkaduwa Urban Council Area. An updated Development Plan has been created for the years of 2024–2033.