Ayurveda Educational and Hospital Board is constituted under section22 (1) of the Ayurveda Act No. 31 of 1961 as amended by the Ayurveda (Amendment) Law No. 7 of 1977. In the original enactment it was styled  Ayurvedic Medicine College and Hospital Board. The management of the College of Ayurvedic Medicine was one of its principal functions. With the decision of the Government to  affiliate the College to the University of Ceylon as one of its institutions the Board was relieved of the responsibility of running  the College. Consequently the Board was reconstituted under the name and style of Ayurveda Educational and Hospital Board, by an amendment to the principal enactment.  

The Ayurveda Educational and Hospital Board consist of 16 members (ex-officio, nominated and elected).  The Commissioner, an ex-officio member, functions as Chairman. The Board has the following powers.

• To arrange with the University of Ceylon the terms and conditions to be fulfilled for qualifying for the award of the diplomas and certificates of the University;
•  To determine and hold examinations to enable persons to obtain diplomas or certificates of the Board and to make such rules as are necessary for that purpose
• To conduct or to arrange to conduct courses, lectures and classes to enable persons to obtain diplomas or certificates of the Board;
• To appoint examiners for the examinations held by the Board
• To make recommendations to the Minister as to the fees to be paid to such examiners;
• To grant diplomas or other academic distinctions honoris causa;
•  To make recommendations to the Minister as to the administration of the Central Hospital of Ayurveda and other hospitals of the Department, and in particular, as to the charges to be made  in respect of patients admitted to those hospitals;
• To make rules for the exercise, discharge and performance of the powers, functions and duties of the Board;, and to do all such acts as may be  necessary for the exercise, discharge and performance of the aforesaid powers, functions and duties.

In pursuance of the powers vested in and functions assigned to the Board the Following activities are performed at present.   Holding of the “Diploma in Ayurveda”, examination, primarily intended for those who fail to enter any of the recognised Ayurveda educational institutions. It has been found that there is a great enthusiasm of the part  of students of Ayurveda to sit this examinations. so far it has been conducted only in Sinhala.  Arrangements  are being made to conduct this examination in Tamil as well, so that students of Siddha  medicine may also benefit.