Shortly thereafter, he amended the
constitution of 1972 to make the presidency an executive post. The provisions of the amendment automatically made the incumbent prime minister—himself—president, and he was sworn in as president on 4 February 1978. He passed a
new constitution on 31 August 1978 which came into operation on 7 September of the same year, which granted the president sweeping—and according to some critics, almost dictatorial—powers. He moved the legislative capital from Colombo to
Sri Jayawardanapura Kotte. He had likely SLFP presidential nominee
Sirimavo Bandaranaike stripped of her civic rights and barred from running for office for six years, based on her decision in 1976 to extend the term of parliament. This ensured that the SLFP would be unable to field a strong candidate against him in the
1982 election, leaving his path to victory clear. This election was held under the 3rd amendment to the constitution which empowered the president to hold a Presidential Election anytime after the expiration of four years of his first term. He held a referendum to cancel the 1983 parliamentary elections, and allow the 1977 parliament to continue until 1989. He also passed a constitutional amendment barring from Parliament any MP who supported
separatism; this effectively eliminated the main opposition party, the
Tamil United Liberation Front.
Economy There was a complete turnaround in economic policy under him as the previous policies had led to economic stagnation. He opened the heavily state-controlled economy to market forces, which many credit with subsequent economic growth. He opened up the economy and introduced more
liberal economic policies emphasizing private sector-led development. Policies were changed to create an environment conducive to foreign and local investment, to promote export-led growth shifting from previous policies of import substitution. To facilitate export-oriented enterprises and to administer Export Processing Zones the Greater Colombo Economic Commission was established. Food subsidies were curtailed and targeted through a Food Stamps Scheme extended to the poor. The system of rice rationing was abolished. The Floor Price Scheme and the Fertilizer Subsidy Scheme were withdrawn. New welfare schemes, such as free school books and the
Mahapola Scholarship Programme, were introduced. The rural credit programme expanded with the introduction of the New Comprehensive Rural Credit Scheme and several other medium and long-term credit schemes aimed at small farmers and the
self-employed. He also launched large-scale infrastructure development projects. He launched an extensive housing development program to meet housing shortages in urban and rural areas. The
Accelerated Mahaweli Programme built new reservoirs and large
hydropower projects such as the
Kotmale,
Victoria,
Randenigala,
Rantembe and
Ulhitiya. Several Trans Basin Canals were also built to divert water to the Dry Zone.
Conservation His administration launched several wildlife conservation initiatives. This included stopping commercial logging in
rain forests such as
Sinharaja Forest Reserve which was designated a
World Biosphere Reserve in 1978 and a
World Heritage Site in 1988.
Tamil militancy and civil war Jayewardene moved to crack down on the growing activity of
Tamil militant groups active since the mid-1970s. He passed the
Prevention of Terrorism Act in 1979, giving police sweeping powers to arrest and detain. This only escalated the ethnic tensions. Jayewardene claimed he needed overwhelming power to deal with the militants. After the
1977 riots, the government made one concession to the Tamils; it lifted the
policy of standardization for university admission that had driven many Tamil youths into militancy. The concession was regarded by the militants as too little and too late, and violent attacks continued, culminating in the ambush of
Four Four Bravo which led to the
Black July riots. Black July riots transformed the militancy into a civil war, with the swelling ranks of the militant groups. By 1987, the
LTTE had emerged as the dominant of the Tamil militant groups and had a free hand over the
Jaffna Peninsula, limiting government activities in that region. Jayewardene's administration responded with a massive military operation codenamed
Operation Liberation to eliminate the LTTE leadership. Jayewardene had to halt the offensive after pressure from India pushed for a negotiated solution to the conflict after executing
Operation Poomalai. Jayewardene and Indian Prime Minister
Rajiv Gandhi finally concluded the
Indo-Sri Lanka Accord, which provided for
devolution of powers to Tamil-dominated regions, an
Indian peacekeeping force in the north, and the demobilization of the LTTE. The LTTE rejected the accord, as it fell short of even an autonomous state. The provincial councils suggested by India did not have powers to control revenue, policing, or government-sponsored
Sinhala settlements in Tamil provinces. Sinhala nationalists were outraged by both the devolution and the presence of foreign troops on Sri Lankan soil. An
attempt was made on Jayewardene's life in 1987 as a result of his signing of the accord. Young, deprived Sinhalese soon rose in a
revolt, organized by the
Janatha Vimukthi Peramuna (JVP) which was eventually put down by the government by 1989.
Foreign policy and the American people, 1984In contrast with his predecessor,
Sirimavo Bandaranaike, Jayewardena's foreign policy was aligned with American policies (earning him the nickname 'Yankie Dickie') much to the chagrin of India. Before Jayewardena's ascendency into the presidency, Sri Lanka had doors widely open to neighboring India. Jayewardena's tenure in the office restricted the doors to India several times; once an American company tender was granted over an Indian company tender. Jayewardene hosted Queen
Elizabeth II on a visit to Sri Lanka in October 1981. In 1984, Jayewardene made an official
State visit the United States; first Sri Lankan President to do so, upon the invitation of then US President
Ronald Reagan. ==Post-presidency==