The prospects for an economically robust, fully participatory, and manageable democracy looked good during the first years of independence. In contrast to India, which had gained independence a year earlier, there was no massive violence and little social unrest. In Sri Lanka there was also a good measure of governmental continuity. Still, important unresolved ethnic problems soon had to be addressed. The most immediate of these problems was the "Indian question," which concerned the political status of Tamil immigrants who worked on the highland tea plantations. The Soulbury Commission had left this sensitive question to be resolved by the incoming government.

After independence, debate about the status of the Indian Tamils continued. But three pieces of legislation--the Ceylon Citizenship Act of 1948; the Indian and Pakistani Residents Act No. 3 of 1948, and the Ceylon Parliamentary Elections Amendment Act No. 48 of 1949--all but disenfranchised this minority group. The Ceylon Indian Congress vigorously but unsuccessfully opposed the legislation. The acrimonious debate over the laws of 1948 and 1949 revealed serious fissures in the body politic. There was a cleavage along ethnic lines between the Sinhalese and the Tamils, and also a widening rift between Sri Lankan Tamils and Indian Tamils.

In 1949 a faction of the Ceylon Tamil Congress (the major Tamil party in Sri Lanka at the time) broke away to form the (Tamil) Federal Party under the leadership of S.J.V. Chelvanayakam. The creation of the Federal Party was a momentous postindependence development because it set the agenda for Tamil exclusivity in Sri Lankan politics. Soon after its founding, the Federal Party replaced the more conciliatory Tamil Congress as the major party among Sri Lankan Tamils and advocated an aggressive stance vis-à-vis the Sinhalese.

Data as of October 1988