Domestic policy His government partially retained the rice subsidy which led to the 1953 Hartal. An ardent anti-communist, he took a hardline stand against trade unions and left-wing parties. He formed the
Ceylon Railway Engineer Corps and
Post and Telegraph Signals to minimise the effects on transport and communication in the event of trade union action. He hosted
Queen Elizabeth II and
the Duke of Edinburgh in Ceylon during their Royal Commonwealth Tour in April 1954, using the occasion to request the appointment of a Ceylonese Governor-General when Lord Soulbury's tenure ended. This came to be when Sir Oliver Goonetilleke was appointed Governor-General in July 1954. Kotelawala himself was appointed to the
Imperial Privy Council during the visit.
Foreign policy at
The Hague in 1955. As prime minister, Kotelawala led Sri Lanka into the
United Nations and contributed to Sri Lanka's expanding foreign relations, particularly with other Asian countries. In 1955 he led his country's delegation to the
Bandung conference in
Indonesia where his performance earned him the epithet
Bandung Booruwa (Bandung Donkey) in Sri Lanka, for his lack of knowledge of the presence of the US 7th Fleet in the South China Sea, and his inability to pronounce "Formosan". His uncontroversial first speech at the conference was written by journalists at the Lake House group, However, he had been influenced by the British Government, as well as by his US-aligned permanent secretary Gunasena de Soyza to make anti-Communist remarks. He made these remarks at a press conference but subsequently withdrew them. He confessed later in Parliament that he had only made these remarks because he was pressured by de Soyza. At the conference he stated his belief that fashionably Marxist
anti-imperialist rhetoric ignored Communist atrocities. In a private conversation with the prime ministers of Pakistan, India, Burma, and China, he asked the Chinese premier
Zhou Enlai if he wanted to bring Communism to Tibet. Zhou replied that it was impractical and undesirable and that the PRC had gone to Tibet because it was "an integral part of the Chinese state" and because it had historically been threatened by "
imperialist intrigues" from the
British Empire and
Imperial Russia.
Electoral defeat His government had to deal with economic problems and ethnic tensions. Although his parliamentary term was valid till 1957, he had the Governor General dissolve Parliament in 1956, calling for fresh elections. However, the UNP faced a major defeat in the
1956 general elections by a group of more radically chauvinistic
Sinhalese parties under the leadership of
Solomon Bandaranaike which formed a coalition called the
Mahajana Eksath Peramuna, which had noncomplete agreements with other leftist parties. Of the 76 candidates fielded by the UNP only eight were elected to parliament, resulting in a humiliating defeat which made the UNP a minority in the opposition. ==Final years in Parliament==