The induction of Indra MK II radars to Sri Lanka Air Force as part of the National Air Defence System led to the formation of the squadron in 2007. Since its inception, the No. 5 Air Defence Squadron has played a vital role in the country’s Air Defence Network by providing air surveillance, early warning, close control of interceptor aircraft as well as assistance for navigation and rescue missions.

The No. 5 Air Defence Radar Squadron SLAF Station Palavi celebrated its 6th anniversary on 24th May 2013 and a lineup of events was held to celebrate the day. A Cricket match played between two teams comprising all Officers and other ranks of the squadron on the 16th May 2013 was the first on the lineup. This was followed by a Shramadana campaign held at Sirimangala Purana Rajamaha Viharaya Mahakumbukkadawala on 18th May 2013.

On its anniversary a Dharma Deshana programme and alms giving ceremony was held at the Sirimangala Purana Rajamaha Viharaya Mahakumbukkadawala to invoke blessings to the squadron, its personnel and also to commemorate the fallen war heroes. The Commanding Officer of SLAF Station Palavi, Gp Capt K Wannigama Sqn Ldr MC Peiris the Commanding Officer No.5 Air Defence Radar Squadron, all Officers, other ranks and civilians participated in the programme.