 Velayudam had been a member of Uva Provincial Council (UPC) since its creation in 1988.Following the death of Percy Samaraweera he became the UNP's chief ministerial candidate in Uva during the 1999 provincial council election but the UNP lost control of the council to the People's Alliance.Velayudam contested the 2001 parliamentary election as one of the United National Front's (UNF) candidates in Badulla District.