Sri Lanka is a small island in the Indian Ocean. There is clear evidence of a flourishing civilization in Sri Lanka over the past 2000 years. The remains of ancient art and sculpture show evidence of Buddhist civilization. The great reservoirs and canal system, which enabled the agro-economic mode of living to flourish, give testimony that this civilization was highly developed. As a multi-ethnic and religious country, it has experienced a civil war, emphasizing the importance of multicultural education for maintaining peace. After gaining independence from British colonial rule in 1948, Sri Lanka embarked on various multicultural education initiatives to promote unity and understanding among its diverse ethnic and linguistic groups. The chapter highlights that C.W.W. Kannangara’s educational reforms, especially the Free Education Bill of 1945, significantly reduced socio-economic disparities and promoted multicultural inclusivity by providing free and accessible education. National policies prioritize social cohesion and equity, fostering an inclusive educational environment that respects Sri Lanka’s ethnic and religious diversity. The national curriculum addresses ethnic and religious biases, contributing to social harmony. Bilingual education initiatives bridge linguistic divides, enhancing cross-cultural understanding between Sinhala and Tamil communities. Co-curricular activities and peace education programs further support multicultural learning by promoting values like empathy and cooperation. However, the effectiveness of these efforts depends on well-trained teachers equipped with multicultural competencies. Despite progress, systemic barriers such as unequal resource distribution between urban and rural schools and limited support for multicultural initiatives continue to hinder achieving equitable educational outcomes.