Rajasinghe II, the king of Kandy, made a treaty with the Dutch in 1638 to get rid of the Portuguese who ruled most of the coastal areas of the island. The main conditions of the treaty were that the Dutch were to hand over the coastal areas they had captured to the Kandyan king in return for a Dutch trade monopoly over the island. The agreement was breached by both parties. The Dutch captured Colombo in 1656 and the last Portuguese strongholds near Jaffnapatnam in 1658. By 1660 they controlled the whole island except the land-locked kingdom of Kandy. The Dutch  persecuted the Catholics and the remaining Portuguese settlers but left Buddhists, Hindus and Muslims alone. The Dutch levied far heavier taxes on the people than the Portuguese had done. A legacy of the Dutch period in Ceylon are the Dutch Burghers, a people of mixed Dutch and local origin. A later definition of the Burgher people of Ceylon was handed down in 1883 by the Chief Justice of Ceylon, Sir Richard Ottley.

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