A Muslim magistrate from Samanthurai, who came to settle a quarrel between two Tamils in a drunken brawl, is stabbed in the argument that ensues. In reaction, Muslim mobs from Samanthurai attack Tamils from Veeramunai, setting fire to Tamil houses in the area and causing Tamils to flee. Following this incident, about three quarters of Tamil residential property was sold to Muslims at very low prices. Tamils thus displaced, founded new villages at Halwattai, Veeracholai, and the 4th and 19th colonies. The areas sold were absorbed into Samanthurai. Veeramunai was thus reduced to a Tamil enclave.
Source
Special Report No. 3: The War and its Consequences in the Amparai District, University Teachers For Human Rights (Jaffna), 16 October 1990