The foundation stone for the institute was laid on 01 July 1996 by the then Minister of Health, Highways and Social Services Hon. A.H.M. Fowzie. Provisions were allocated in 2005 for the commencement of activities of the institute. A governing council named Vibhavi Development Fund was established to run the institute under the patronage of Mr. H.S. Piyasena. The Divisional Secretary and the Social Service Officer were appointed respectively as ex-officio president and secretary of the council. On 24 March 2006, this institute was formally started for the provision of vocational training to boys with intellectual disabilities. With the intervention of the then Director of Social Services, Ms Anusha Gokula Fernando, this institution was taken over by the Department of Social Services as Vibhavi Vocational Training Institute, Kalawana.