The Department of Government Factory, which was initially established in 1849 at Gas Works Street, Colombo, as a sub-department of the Public Works Department, was later relocated in 1928 to its present location in Kolonnawa.

During its formative years, the Department has contributed to the development of infrastructure facilities such as roads, bridges, irrigation systems and buildings and the activities of the Department have been handled by foreign engineers.

Until 1969, the Public Works Department carried out these operations, after which its civil engineering activities—such as the construction and maintenance of highways and buildings—were entrusted to the Department of Highways and the Department of Buildings. Meanwhile, mechanical engineering functions were entrusted to the Department of Government Factory, established as a Class “A” department on 10 January 1971.

Since then, the Department of Government Factory has been operated under the advance account of the General Treasury, providing essential mechanical engineering support services required for the operation of various government institutions. Over time, the department has functioned under several ministries, and currently is under the Ministry of Housing, Construction, and Water Supply.