On December 11, 1919, the Ceylon National Congress was founded, and Ponnambalam Arunachalam was appointed as its first president. As a union, it played a significant role in presenting proposals for constitutional reforms. The aim of the Congress was to create a common national movement. However, Mr. Ponnambalam Arunachalam resigned from the Ceylon National Congress when Tamil leaders, led by him, demanded a separate seat from Colombo under the Manning Reforms of 1920, which the majority of Sinhalese leaders opposed. This was a key reason for the weakening of the National Congress and also affected the trust and unity between the Sinhalese and Tamil communities. The loss of support from the low-country Sinhalese, A.E. Gunasinghe's withdrawal from the union in 1929, controversy over the Donoughmore system, and the departure of E.W. Perera and others further weakened the National Congress.
LK-NA/60/39, 13.12.1918, meeting minutes of Ceylon National Congress