In 1990 the Liberation Tigers of Tamil Eelam (LTTE) led by Vellupillai Prabhakaran (CV), imposed a tax of 2-gold sovereigns on every household in Jaffna to finance their civil war. A receipt for payment of the gold Tax by family was needed for example travel out of Jaffna.
The Indian Peace Keeping Forces (IPKF) pulled out of Sri Lanka on 1990 March 24, at the request of then President Premadasa. On 1990, June 11, the LTTE broke the 1-year cease-fire it had entered into with the Sri Lanka Government and with Eelam War-2. took control of Jaffna town in 1990 July. The SL Army remained trapped in the Jaffna Fort for a 107 day siege till October. LTTE held Jaffna till 1995 December and set up a parallel administration in the region. They minted and returned two gold tokens each to some of the families who had paid the tax.