Many countries have identified urbanization as a progressive process and one of the key forces underlying technological innovation, economic development and socio-political development. In this context, this paper attempts to analyze the urban growth and current level of urbanization in the Sabaragamuwa Province which is one of the plantation areas located in the outer periphery in Sri Lanka. In addition, this study examines the hierarchical order of urban centres of the Sabaragamuwa Province. Data for the calculation of urban growth rates and level of urbanization were collected from several institutions and research papers of the university academics. Although the Sabaragamuwa Province as a major plantation area had reported a relatively high average annual growth rate of 5.3 percent of urban population during the inter-censal period of 1963-1971, it has slowed down to 2.0 percent in the intercensal period of 1971-1981. Due to the re-classification of urban areas in 1987 presently the Sabaragamuwa Province has 3 national urban centres. Accordingly, during the inter-censal period of 1981-2001 the average annual growth rate recorded by the Sabaragamuwa Province was -1.6 percent and level of urbanization was 4.2 percent. It is the lowest level of urbanization compared with the other provinces in the country. Accordingly, the slow growth of urban population, low level of urbanization and the very few national urban centres directly and indirectly affect the less dynamic economy of the Sabaragamuwa Province.