The Dutch Hospital building dates back to the 17th century when the Dutch ruled coastal Sri Lanka. It was constructed with thick walls, high ceilings, and large verandas designed to keep the building cool—an excellent example of Dutch colonial architecture. Originally, it served as a hospital for officers and staff of the Dutch East India Company. The building's strategic location near the harbor made it a convenient health facility for those arriving by sea. After the British took over Sri Lanka, the hospital continued to function for various public uses before eventually falling into disuse.

In the early 2000s, the Sri Lankan government undertook a careful restoration project to revive the building while preserving its colonial charm. It reopened as a heritage shopping and dining complex in 2011. Since then, the Dutch Hospital Precinct has become a must-visit cultural and culinary destination in Colombo, attracting both tourists and locals looking for a relaxed, upscale atmosphere amidst historic surroundings.