Abstract: Intercultural competence can be viewed as the ability to communicate successfully with culturally different others using one’s intercultural knowledge, skills and attitudes. This also is the ultimate goal of learning a foreign language. Nevertheless, this aspect of having an intercultural dimension to foreign Language learning is a completely neglected aspect of English language learning in Sri Lanka, though English is prescribed as the lingua franca or the link language by the country's constitution. On the other hand, to become a competent teacher in English, one needs to be interculturally competent as the teachers of English are constantly required to handle students in linguistically and ethnically segregated Sinhala and Tamil medium schools. Thus, this study is very significant as there have been no empirical studies conducted in the similar nature, in the country and few elsewhere in the world. The study explores the possibilities of developing Intercultural Competence of prospective teachers of English at a preservice teacher education institute in Sri Lanka, through a curriculum intervention which provides them with extensive opportunities to engage in intercultural interactions while learning English in the classroom together with their counterparts from other major ethnic groups.