Bathalagoda is an ancient village which is located in Hiriyala Hathpaththuwa in Kurunegala district. The ancient irrigation tank that provided irrigation water to the area including Btalagoda village was in dilapidated condition and it was improved by Parker, an engineer, in 1902. As a result, water supply to the area was assured enabling cultivation of paddy in the irrigation scheme continuously in both Yala and Maha seasons.

The land in which present RRDI is situated was owned by Mr. Hamidu Muhandiram. The government acquired this land in 1929 and offered it to the Department of Agriculture. It was kept under the control of Wariyapola farm.

By this time,rice varietal development and research were being conducted at the research center located at Mahailluppallama. As there was no assured water supply to the paddy fields there it faced lots of difficulties. Dr. Abeyrathne who was the Botanist in the Department of Agriculture decided to shift the rice research program from Mahailluppallama to Batalagoda farm. Accordingly, Mr. Hector Weerarathne who conducted rice research at Mahailluppallama was transferred to Batalagoda and program was established at Balatagoda farm.Mr. Hector Weerarathne could carry out a very sound program with the assured water supply.

Honorable D.S. Senanayake, on understanding the importance of the work going at Batalagoda farm and need of uninterrupted water supply to the farm gave an order to the Irrigation Department to issue water only to the farm when the water level of the Bathalagoda tank reaches 3 feet in order to assure irrigation water supply to the farm. The Irrigation Department follows this order even today.

In 1952, Batalagoda farm was named as Central Rice Breeding Center. It was further strengthened by attaching research stations situated at Ambalanthota, Benthota, Bombuwela, Labuduwa, Samanthurei, Paranthan and Murunkan and renamed as Rice Research and Development Institute in 1993.

In the beginning there was only the farm building and in 1982  a research building was built to facilitate scientific activities. As well as in 2009 a training center and a hostel which has the capacity for 70 personal were built to transfer the generated technologies efficiently. At present there is a new administrative and research building complex in RRDI.