Mudali (or Mudaliyar) was a colonial title and office in Ceylon (now Sri Lanka). The Portuguese colonials created the Mudaliyar class in the 17th century by enlisting natives of different castes form the coastal areas, who were most likely to serve the Portuguese masters with utmost loyalty. The Dutch continued the practice of the Portuguese. This class used the Mudali as a hereditary title; however, the British re-established a Mudaliyar class, with appointments that had the title of Mudali, this process was stopped in the 1930s when the Native Department of the British government of Ceylon was closed down. All Official and Titular appointments of Mudaliyars were made by the Governor of Ceylon. Appointments were non-transferable and usually hereditary, made to locals from wealthy influential families loyal the British Crown.
At present the post of Court Mudliar remain in function in Sri Lankan Courts.
Mudaliyar is a Tamil title, derived from the word முதல் - mudhal, meaning "first", and the honorific suffix யார்- yar, meaning "The first" as in the person of the first rank. The position was created in the 17th century by the Portuguese to function as a link between the colonial administration and the local populace, as they had done in South India. Incumbents received payment in form of land grants and use of tenured service (Rajakariya) of the local population which they extracted for their own estates.
A De Saram family of Dutch and Malay ancestry had Sinhalised itself in the late 18th century by posing as the representatives of the masses and subsequently convincing the British rulers that they were from the numerous Govigama caste. This was a strategic move as it gave the British masters the impression that the De Saram family had the backing of a large body of natives. It was also the easiest route to Sinhalisation as the peasant community was widely dispersed, still unstructured and without inter-community networks or leaders.
The first notable ancestor of the De Saram family was an interpreter who accompanied the Dutch Embassy to Kandy 1731–1732. Despite his advanced age of 71 years, this early De Saram had to make the entire journey by foot as his social status did not warrant travel in a palanquin. From there, the De Saram family progressively gained power and position by loyalty, switching religions from Dutch Protestantism to British Anglicanism and benefitting from the preference of British rulers to appoint individuals of unknown ancestry to high positions. By respectively collaborating with the Dutch and British rulers, the De Sarams succeeded in marginalizing the traditional ruling class. Governors Maitland (1805–1811), Gordon (1883–1890) and others effectively used divide and rule policies and created caste animosity among the native elite. The De Saram family eventually had a strong and exclusive network of relatives as Mudaliyars by the late 19th century. Later, through marriage alliances the network extended to the Obeyesekere, Dias-Bandaranaike, Ilangakoon, de Alwis, de Livera, Pieris, Siriwardena and Senanayake families.