Damminda Alahakoon graduated from the University of Colombo, Sri Lanka with a first class honours degree in Computer Science, and a PhD in Computer Science from Monash University. He was awarded the University of Colombo gold medal as the best graduating student in 1994, and the Sri Lanka Asscociation for the Advancement of Science (SLAAS) Computer Award also in 1994. He was awarded the Monash Artificial Intelligence Prize in 2000.

Before starting his PhD, Damminda was employed in the financial industry as a credit officer, accountant and at the Colombo Stock Exchange as an IT officer. After completing the PhD in 2000 he worked as a Data Mining Specialist with a business intelligence firm in the Netherlands. Damminda joined the School of Business Systems as a lecturer in 2002.