The concept of sustainable forest management has emerged in early 1990s' as a vision of forest management in all over the world. In Sri Lanka, avoiding deforestation and improving the forest resources are the preliminary step towards sustainable forest management. Forest policies and strategies that were taken at various times gave greater concerns to solve deforestation problem and improve forest resources through sustainable manner. This paper attempts to discuss National forest policy of Sri Lanka and explore forest policy on sustainable management of forestry resources which are under the supervision of forest Department. Furthermore this paper makes some recommendation for better implementation of forest policies for future sustainability in the state forest resources. The Forest policy in Sri Lanka has changed with the time. The history of establishment of policies for the management of forest was stated in King Devanampiyatissa period of 246 B.C. Ancient agrarian society utilize forest and forest product, while maintaining its ecological balance. The first scientific policy for forestry sector in Sri Lanka was formulated by the British in 1929. The main objective of this forest policy is forest management focused on maximum out of quality timber. After the independent in Sri Lanka from the British in 1948, policy for forestry sector was modified in 1953, 1980 and later in 1995 The priorities of the policy changes focus on conservation of natural value of forest, raise the unit productivity of the forests land and enhance beneficial of the rural population.Forest Department with limited human and other resources, hierarchical management structure, political influence, lack of policy and lack of institutional and community support has recognized the requirement of appropriate policies, institutional reform and capacity building for promote sustainable livelihood and Sustainable forest management.Read Complete Article at ijSciences: V52016121174 AND DOI: http://dx.doi.org/10.18483/ijSci.1174