 He was accused by Premadasa as being one of the cabinet ministers behind the Burning of Jaffna library in 1981.Athulathmudali resigned from his cabinet position in August 1991 and in September 1991 he and several UNP MPs brought forth a motion to impeach Premadasa.The impeachment which was supported by members of the UNP and other parties in the opposition failed as Premadasa adjourned Parliament and the Speaker Mohamed dismissed the impeachment stating a lack of signatures.