From the Municipal Council to the Western Provincial Council

By 1999 nearly 18 months had passed since Karu was first elected as the Mayor of Colombo.

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During thAat period he had begun working 14-hour or even longer days. While he was able to diligently serve the people of Colombo, his absence and shift in focus from business to politics resulted in the once profitable businesses managed by him taking a serious blow. "Ceylon Trading Company and C.W Mackie along with other companies under the group had started to earn lesser profits than previously. I believe one reason was that I was not able to fully focus on business activities after being elected as Mayor..." Karu says. Therefore he decided that he should step down from the post of Mayor halfway into his term.

However the leader of the United National Party (UNP), Ranil Wickremesinghe would not hear of it. Instead, Wickremesinghe attempted to dissuade Karu from stepping down. But Karu reminded the UNP leader that he had only accepted the post on one condition and that it was readily accepted by Wickremesinghe at the time.

"When it was suggested that I take up this post I requested that you appoint another suitable person instead. However, you refused. I then accepted it based on one condition. That is, I would only serve as Mayor for one year..." Karu had told Wickremesinghe.