The Department of Management Studies at the University of Peradeniya was established in 2002, with the aim of improving degree programmes with a management focus. Specific programmes that were expected to benefit included the B.Com degree programme and the management component of the BA (general) degree programme, which was under the Department of Economics, Commerce and Statistics in the Faculty of Arts since 1962. Further, the department was expected to develop new management degree programmes for undergraduate and postgraduate levels, and to contribute significantly to inter-faculty teaching programmes.

Subsequently, with the establishment of the Faculty of Management in 2015, the Department of Management Studies became one of the five departments affiliated to the new faculty. While continuing its services to improve standards of existing programmes, in 2016, the department commenced offering a new degree programme, namely BBA Organizational Management. In addition, following guidelines of the Sri Lanka Qualifications Framework (SLQF) a certificate level programme and diploma level programme have been proposed. These aim to provide educational opportunities to those who failed to continue formal tertiary education or those who have entered into the industry without a formal qualification in the field of management.

The Objective of the department is to contribute to the university and to the society through academic programmes while disseminating knowledge on the Management discipline.