In accordance with the Sri Lankan constitution, provinces have legislative power over a variety of matters including agriculture, education, health, housing, local government, planning, road transport and social services.
This changed in 1987 during an attempt to end the Sri Lankan Civil War when the Indo-Sri Lanka Accord was signed on 29 July 1987, following several decades of increasing demand for a decentralization.
The accord required a referendum to be held by 31 December 1988 in the Eastern Province to decide whether the merger should be permanent.
Crucially, the accord allowed the Sri Lankan president to postpone the referendum at his discretion.
On 1 March 1990, just as the Indian Peace Keeping Force was preparing to withdraw from Sri Lanka, Annamalai Varadaraja Perumal, Chief Minister of North Eastern Province, moved a motion in the North Eastern Provincial Council declaring independent Eelam.
[5] President Premadasa reacted to Permual's unilateral declaration of independence 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.
[3] On 16 October 2006 the Supreme Court ruled that the proclamations issued by President Jayewardene were null and void and had no legal effect.