The Town & Country Planning (Amendment) Act, No. 49 of 2000 was approved unanimously by the Parliament of Sri Lanka on 9th August 2000 and received the official sanction over establishing of National Physical Planning Department to replace the former Town & Country Planning Department. Having taken necessary administrative steps required by this amendment the new National Physical Planning Department (NPPD) was formerly established and inaugurated by the Ministry of Urban Development, Construction and Public Utilities on 21st May 2001. It's purpose was, as specifically stated in the preamble to the Act,

To authorize the formulation and implementation of a national physical planning policy; the making and implementation of a national physical plan with the object of promoting and regulating integrated planning of economic, social, physical and environmental aspects of land in Sri Lanka; to provide for the protection of natural amenities, the conservation of natural environment, buildings of architectural and historic interest and places of natural beauty; to facilitate the acquisition of land for the purpose of giving effect to such plan and to provide for matters incidental to or connected with the matters aforesaid.

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