Yashoda Wimaladharma was born on 28 October 1970 in Sri Lanka to Ravilal Wimaladharma, who was a Hindi language lecturer at the University of Kelaniya, and Mallika Wimaladharma, a former dancer and school teacher. Her older sister, Thusitha, is seven years her senior and now works as a school teacher. Yashoda is fluent in Hindi and holds a master's degree in the language. She attended St. Paul's Girls School in Milagiriya, Colombo.
In 1988, Yashoda Wimaladharma was offered a role in the teledrama Atta Bindei, which was directed by her uncle, Bandula Vithanage. This marked the beginning of her career in the field of drama. Her debut in cinema was in the film Gurugedara (Teacher's home), which was directed by Vijaya Dharmasiri, in 1990. For her role in this film, Yashoda won the merit award at the Sarasaviya Film Festival in 1993.
Yashoda also holds the distinction of being the first Sri Lankan actress to host her own website, which was launched on June 18, 2003, in a ceremony held at the Galadari Hotel in Colombo. She also wrote the lyrics for her first song, Thugu Girikulu, which was sung by Dayan Witharana and composed by Rohana Weerasinghe, in 1999.
In 2019, Yashoda Wimaladharma made history as the first Sri Lankan to be appointed as a judge in an international film festival.