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Sri Lanka Genealogy Forum
The following excerpts from Geoffrey Powell's "Kandyan Wars" might explain more about the involvement of the East India Company in Ceylon.
The East India Company was reluctant to surrender its profitable and useful conquest, but the British Government wanted to run the newly acquired territories as a Crown Colony, unconnected in any way with the Company. The consequence was an unwieldy compromise, which came to be known as Dual Control. Although North's own appointment and those of his accompanying officials who were to be responsible for the general administration of the country, had been made by the crown, the Governor was to report to the Secretary of State in London through the Court of Directors, and he was also subject o the orders of the Governor-General at Fort William. Revenue and trade remained in Company hands……….
The cumbrous system of Dual Control had been abolished after the Peace of Amiens, and the home Government then assumed complete responsibility for the Maritime Provinces. One consequence of this change was that, by the start of 1803, all the units of the East India Company Army, except for the Bengal and Madras artillery companies, had left the island. In their place now served the Malay Regiment and the Ceylon Native Infantry, who the following year were to change their names to the 1st and 2nd Ceylon Regiments.
The appointment, in May 1803, of an officer of the King's Service to succeed Major-General Macdowall as commander of the military forces in the island severed the final link between Ceylon and the East India Company.