Lakshmi Persaud was born in Tunapuna, in the village of Pasea, Trinidad. Her forefathers, Hindus from Uttar Pradesh, moved from India to the Caribbean in the 1890s.

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She left Trinidad to do her BA (Hons) and her Ph.D. at Queen’s University Belfast, Northern Ireland and her Post-graduate Diploma in Education at Reading University, UK.

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Dr Persaud taught at well-regarded grammar schools in the West Indies (Queen’s College in Guyana, Harrison college in Barbados and St. Augustine Girl’s High School in Trinidad). She moved to the UK in 1974 with her husband, Professor Bishnodat Persaud, prominent economist, and her three children, Rajendra, Avinash and Sharda. Lakshmi wrote articles on socio-economic concerns for newspapers and magazines for many years, she also read and simultaneously recorded books in Philosophy, Economics and Literature for the Royal National Institute for the Blind in London.

She began a new career in the late 1980s - writing fiction. Her short story 'See Saw Margery Daw', was broadcast by the BBC World service on Saturday 18th and Sunday 19th November 1995.

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Her first novel 'Butterfly in the Wind' was published by Peepal Tree Press in 1990. It is still selling well and now in its sixth print. 'Sastra' was published in 1993.

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In October 1994, the Trinidad Guardian published the best seller list for Caribbean books published abroad. At the time Lakshmi Persaud had published two novels in the U.K. 'Sastra' was placed first on the list and 'Butterfly in the Wind', fifth.

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'For the Love of my Name', her third novel, was launched in December 1999 and public demand has meant it has also had to be reprinted.

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In March 2004, 'Raise the Lanterns High' was published by Black Amber and received excellent reviews in the UK, the Caribbean and internationally.

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Lakshmi's last novel, 'Daughters of Empire' was published in 2012 by Peepal Tree. It is a sweeping family saga, a moving portrayal of migration and the challenges it presents. 

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There has been much recognition of Lakshmi Persaud’s work by academic institutions. Her novels have been used as texts in Caribbean and post-colonial literature courses in a number of Universities including: Warwick, Birmingham, Goldsmiths College (London), London Metropolitan, Washington, Toronto, Puerto Rico, California (Los Angeles), Miami and Mills College (California), and The University of the West Indies. Extracts from her novels have been used in English examinations in the Caribbean from '11+' to GCSE level.

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In recognition of her work, Warwick University established a 'Lakshmi Persaud Research Fellowship' at its Centre for Translation and Comparative Cultural studies.

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For the 50th Anniversary of the Independence of Trinidad and Tobago, the National Library and Information System Authority (NALIS) awarded Lakshmi with a Life Time Literary Award for her significant contribution to the development of Trinidad and Tobago’s Literature (November 2012).

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In October 2013  the University of the West Indies awarded Lakshmi an Honorary Degree (Doctor of Letters - DLitt) at a graduation ceremony at the St Augustine Campus, Trinidad.

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In March 2020, Persaud was awarded a Chaconia Medal (gold) as part of the National Awards in Trinidad and Tobago. The Chaconia is awarded to “any person who has performed long and meritorious service to Trinidad and Tobago tending to promote the national welfare or strengthen the community spirit”. She received the Chaconia Medal for her work in education and culture. Lakshmi's cultural contribution has also been recognised by the National Council of Indian Culture (NCIC) in Trinidad.

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On 14 January 2024, Lakshmi died peacefully at her home in London after living with dementia from 2017. Despite increasing forgetfulness, she retained her strength, wit and sharp intellect to the end.