Born to a Malay family in Trincomalee, Muthaliff was educated at D. S. Senanayake College, Colombo where he excelled in both studies and sports.

He was traveling from his home in Manning Town, Narahenpita to the Kotelawala Defence Academy, where he was taling a course in computer science.

Traveling in an unmarked civilian car with a civilian chauffeur provided by the army, gunmen trailed him on a motorcycle, when it stopped at the traffic lights at the Polhengoda junction in front of the military police headquarters they shot Muthaliff 18 times while he sat in the rear seat of the car.

He was buried at the burial grounds of the Dehiwala Muhaideen Grand Jumma Mosque for Janaza on 1 June 2005 with full military honors.

[6][7][8] Muthaliff gallantry in the battlefield and his work in intelligence earned him several awards, including the Rana Wickrama Padakkama.