The first World Buddhist Summit held in Lumbini from 30th November to 2nd December,1998 proposed to establish a Buddhist university in Lumbini, the birthplace of Gautam Buddha, to impart standard education on Buddhist Philosophy, Literature and Culture, and the Lumbini Declaration, issued at the conclusion of the Summit, requested the Nepal government to take immediate action in this direction. Accordingly, the Lumbini Development Trust constituted a seven-member Preparatory Committee with Prof. Tulasi Ram Vaidya as convener and Ven. Sudarshan Mahasthavir, Ngawang Hoser Lama, Pt. Badri Ratna Bajracharya, Prof. Mohan Prasad Lohani, Prof. Tri Ratna Manandhar and Mr. Min Bahadur Shakya as members. Finally, on 14th Marga 2061 B.S. (29th November 2004), Lumbini Buddhist University was formally established with the promulgation of an Ordinance. Later in 2006, the Parliament approved the Ordinance with modifi cations as Lumbini Buddhist University Act (Lumbini Bauddha Vishwavidyalaya Ain 2063).
Following the People’s Movement of 2006 (2062 – 63 B.S) the Legislative assembly Adopted an Act relating to the establishmentn of LBU, Lumbini in 2006 ( 2063 B.S).
The Act provides for the Prime Minister of Nepal as Chancellor of LBU and the Minister of Education, Nepal as Pro – Chancellor. The University’s Vice Chancellor acts as Chief Executive who is assisted by the Registrar in financial and general adinistration and the Dean in academic programmes.