Becoming Kumaratunga's chief defense adviser, Lt. Colonel Ratwatte became the de facto defence minister once hostilities in the
Sri Lankan Civil War commenced following the
Bombing of SLNS Sooraya and SLNS Ranasuru which started the
Eelam War III in April 1995. The government felt betrayed by the LTTE in its earlier peace talks and looked into defeating the LTTE militarily. Ratwatte strongly advocated the recapture of the LTTE controlled
Jaffna Peninsula. Although symbolically important, the Army Commander
Lieutenant General Gerry De Silva refused to deploy troops to recapture the Jaffna peninsula due to the need for large troop numbers to defend it from the LTTE that would withdraw to the jungles of Wanni. De Silva was overruled and planning commenced under
Major General Rohan Daluwatte for
Operation Riviresa. Launched in late 1995, Operation Riviresa under Daluwatte recapture of the Jaffna peninsula, but failed to cut off LTTE units that withdrew to the jungles of Wanni. The recapture of Jaffna was well celebrated and Ratwatte who oversaw it as deputy defence minister; was promoted to the rank of
general by President Chandrika Kumaratunga in 1995 and was awarded the
Riviresa Campaign Services Medal. The following year the government faced a major defeat in the
Battle of Mullaitivu in which it lost an entire brigade and was forced to withdraw from Mullaitivu. Government forces responded by recapturing the strategic town of
Kilinochchi. Having the burden of defending the Jaffna peninsula and no land route to resupply, Ratwatte initiated
Operation Jayasikurui in 1997; it failed to achieve its primary objective of gaining a land route to the Jaffna peninsula and was called off by President Kumaratunga in 1999. This led to his falling out of favour with President Kumaratunga, who established the post of
Chief of the Defence Staff to reduce Ratwatte's influence over the operational matters of the military. He remained a Cabinet Minister until his party was defeated in the 2001 general elections. ==Later life==