By the mid-eighteenth century, it was apparent that the Mughal Empire (1526-1757) in India faced imminent collapse, and the major European powers were positioning themselves to fill the power vacuum in the subcontinent. Dutch holdings on Sri Lanka were challenged in time by the British, who had an interest in the excellent harbor at Trincomalee. After skirmishing with both the Dutch and French, the British took Trincomalee in 1796 and proceeded to expel the Dutch from the island.
In 1766 the Dutch had forced the Kandyans to sign a treaty, which the Kandyans later considered so harsh that they immediately began searching for foreign assistance in expelling their foes. They approached the British in 1762, 1782, and 1795. The first Kandyan missions failed, but in 1795, British emissaries offered a draft treaty that would extend military aid in return for control of the seacoast and a monopoly of the cinnamon trade. The Kandyan king unsuccessfully sought better terms, and the British managed to oust the Dutch without significant help in 1796.
The Kandyans' search for foreign assistance against the Dutch was a mistake because they simply replaced a relatively weak master with a powerful one. Britain was emerging as the unchallenged leader in the new age of the Industrial Revolution, a time of technological invention, economic innovations, and imperialist expansion. The nations that had launched the first phase of European imperialism in Asia--the Portuguese and the Dutch--had already exhausted themselves.
While peace negotiations were under way in Europe in 1796, the British assumed Sri Lanka would eventually be restored to the Dutch. By 1797 however, London had decided to retain the island as a British possession. The government compelled the British East India Company to share in the administration of the island and guaranteed the company a monopoly of trade, especially the moderately profitable--but no longer robust--cinnamon trade. The governor of the island was responsible for law and order, but financial and commercial matters were under the control of the director of the East India Company. This system of "dual control" lasted from 1798 to 1802. After the Dutch formally ceded the island to the British in the 1801 Peace of Amiens, Sri Lanka became Britain's first crown colony.
Kandyan headmen and the British signed a treaty known as the Kandyan Convention in March 1815. The treaty decreed that the Kandyan provinces be brought under British sovereignty. In general, the old system was allowed to continue, but its future was bleak because of the great incongruity between the principles on which the British administration was based and the principles of the Kandyan hierarchy. Troubled by the corresponding decline in their status, the monks began to stir up political and religious discontent among the Kandyans almost immediately following the British annexation. The popular and widespread rebellion that followed was suppressed with great severity. When hostilities ended in 1818, the British issued a proclamation that brought the Kandyan provinces under closer control. With the final British consolidation over Kandy, the country fell under the control of a single power--for the first time since the twelfth-century rule of Parakramabahu I and Nissankamalla.
When the British first conquered the maritime provinces of Sri Lanka, the indigenous population of the island was estimated at only 800,000. When the British left a century and a half later, the population had grown to more than 7 million. Over a relatively short period, the island had developed an economy capable of supporting the burgeoning population. Roads, railways, schools, hospitals, hydroelectric projects, and large welloperated agricultural plantations provided the infrastructure for a viable national economy.
In the mid-1830s, the British began to experiment with a variety of plantation crops in Sri Lanka, using many of the technological innovations developed earlier from their experience in Jamaica. Within fifteen years, one of these crops, coffee, became so successful that it transformed the island's economy from reliance upon subsistence crops to plantation agriculture. Tea replaced coffee in later years.
In Sri Lanka as in India, the British created an educated class to provide administrative and professional services in the colony. By the late nineteenth century, most members of this emerging class were associated directly or indirectly with the government. Increased Sri Lankan participation in government affairs demanded the creation of a legal profession; the need for state health services required a corps of medical professionals; and the spread of education provided an impetus to develop the teaching profession. In addition, the expansion of commercial plantations created a legion of new trades and occupations: landowners, planters, transport agents, contractors, and businessmen. Certain Sinhalese caste groups, such as the Karava and Salagama, benefited from the emerging new economic order, to the detriment of the traditional ruling cultivators (Goyigama).
The development of a capitalist economy forced the traditional elite--the chiefs and headmen among the low-country Sinhalese and the Kandyan aristocracy--to compete with new groups for the favors of the British. These upwardly mobile, primarily urban, professionals formed a new class that transcended divisions of race and caste.
Source : Sri Lanka - A Country Study
Federal Research Division, Library of Congress
Edited by Russell R. Ross and Andrea Matles Savada
Research Completed October 1988