Management of groundwater quality is becoming a key feature of a sustainable future while implementing sustainable development goals which are given by United Nations. During past decades, rapid land-use changes, urbanization, and population expansion are highly influenced the groundwater quality. To provide policymakers and water managers with reliable information on groundwater quality is a challenge to achieving sustainable development goals in developing countries. Therefore, this study intended to assess the spatial variability of groundwater quality using selected physicochemical parameters at the 39 available groundwater wells during the southwest monsoon period. Spatial variability is explained in 13 Divisional Secretariat Division (DSD) levels in Colombo district due to easier interpretation and management purposes. Afterward, groundwater quality was related to urbanization using population density and built-up density in 13 DSD levels in Colombo district, Sri Lanka. PCA (Principal Component Analysis) shows that 08 DSD levels are urban and 05 DSD levels are rural. pH (3.22–6.73), COD (8.91–52.9 mg/L), BOD5 (1.2–9.9 mg/L), and DO (2.17–5.05 mg/L) showed deviations from the given standards by local authorities in Sri Lanka. A significant relationship ( p < .05) was found between urbanization and physicochemical parameters in regression analysis. The water quality index shows poor water quality indices in urban areas and vice versa in rural areas which is similar to the results obtained by statistical analysis. A sustainable urban development plan with continuous groundwater quality monitoring is necessary to protect groundwater resources in Sri Lanka.