The provinces have existed since the 19th century but did not have any legal status until 1987 when the 13th Amendment to the Constitution of Sri Lanka established provincial councils.

The accord required a referendum to be held by 31 December 1988 in the Eastern Province to decide whether the merger should be permanent.

[5][10] On September 2 and 8 1988 President Jayewardene issued proclamations enabling the Northern and Eastern provinces to be one administrative unit administered by one elected Council.

However, the referendum was never held and successive Sri Lankan presidents issued proclamations annually extending the life of the "temporary" entity.

The thought of the rebel Liberation Tigers of Tamil Eelam controlling this province, directly or indirectly, alarmed them greatly.

[11] On 16 October 2006 the Supreme Court ruled that the proclamations issued by President Jayewardene were null and void and had no legal effect.

Much of the Eastern Province was under the control of rebel Liberation Tigers of Tamil Eelam for many years during the civil war.

[19] Other Projects include reconstructing the Walai Iravu bridge which was destroyed by the LTTE, developing the Weber stadium in the Batticaloa town, increasing agricultural production, construction of Manmunai, Vavunativu and New Oddamavadi bridges, carpeting roads, constructing 48,000 houses in the Eastern province for the people who live below the poverty line,[20] developing the Trincomalee Harbour, construction of the Sampur Power Station, Development of Maritime park and a Maritime Museum in Trincomalee, creation of the Sampur industrial zone,[21][22] development of bus stands, canals and the Oluvil Harbour in Ampara district.

[33][34][35][36] The province benefits from a large tourism industry with many seaside resorts and hotels situated mainly in lagoons as well as beaches such as Pasikudah, Nilaveli, Uppuveli and Kalkudah.

However, the Indian Peace Keeping Force (IPKF), which at that time occupied the North-East Province, rigged the elections in the north so that the Eelam People's Revolutionary Liberation Front (EPRLF) and Eelam National Democratic Liberation Front (ENDLF), two Indian backed paramilitary groups, won all of the 36 seats in the north uncontested.

[42] On 1 March 1990, just as the IPKF were preparing to withdraw from Sri Lanka, Permual moved a motion in the North-East Provincial Council declaring an independent Eelam.

[43] President Premadasa reacted to Permual's UDI by dissolving the provincial council and imposing direct rule on the province.