In 1766, the Dutch Governor of Ceylon Wilhelm Falk signed an agreement with King Kirthi Sri Rajasinghe. According to the terms of the agreement, known today as the Treaty of Batticaloa or the Hanguranketha Treaty, the Kandyan Kingdom had to pay five million florins to the Dutch as reparations and the King had to acknowledge the imperial authority of the Dutch “four miles from the coast to the countryside.”