In accordance with the Sri Lankan constitution, NPC has legislative power over a variety of matters including agriculture, education, health, housing, local government, planning, road transport and social services.

The Eelam People's Revolutionary Liberation Front, an Indian backed paramilitary group, won control of the North Eastern provincial council.

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

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

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