Lumbini Development Trust was formed by the Government of Nepal as provisioned by Lumbini Development Trust Act 2042 (1985) in 1985 to implement Lumbini Master Plan, explore, excavate and conserve archaeological sites scattered in Kapilavastu, Rupandehi and Nawalparasi districts. The LDT was constituted in order to present before the people of the world and commitment of Government of Nepal to project goal and ideal of development of Lumbini.

The jurisdiction of LDT includes the places Tilaurakot (ancient Kapilvastu) Gotihawa, Niglihawa, Sagarhawa, Sisaniyakot, Araurakot, Kudaan (Kapilvastu), Devadaha (Rupandehi), Ramgram (Nawalparasi), which are directly or indirectly related with the life of the Lord Buddha and his birth place, Lumbini and it shall include other areas as specified by Government of Nepal by a notification in Nepal Gazette. Provided that, while specifying places in such manner, only the places which are directly or indirectly related to the life of the Lord Buddha may be specified.

The Trust receives funds from the Government of Nepal, national and international Buddhist and non-Buddhist organizations and generates internal income for administrative and development works. 

The objectives of the Trust, as per the policy approved by Government of Nepal, shall be as follows:

(a) To obtain or arrange for obtaining contribution of cash, in-kind, or any other type of assistance for the plan from any sector within or outside the Nepal.

(b) To collect or arrange for collecting contribution for the plan from within or outside the Nepal.

(c) To establish direct contacts with individuals or institutions within or outside the Nepal for the purpose of obtaining assistance or collecting contributions for the Plan.

(d) To make available funds for the plans approved after analyzing work plans.

(e) To depute a member or any other person to inspect whether or not funds allocated for specific programmes as approved by the Committee (Board of Trustees) have been properly utilised.

(f) To introduce changes in the work plan if so deemed necessary in the interest of the Plan.

(g) To form committees and sub-committees within or outside the Nepal as required for fulfilling the Plan.

(h) To evaluate the functions and operations of committees and subcommittees constituted under Clause (g).

(i) To formulate policies for the committees and sub-committees formed under Clause (g) and issue Guidelines.

(j) To maintain close and cooperative relations with Government of Nepal.

      (k) To perform or cause to perform other necessary functions in order to achieve the objectives of the Trust.