Elephant is the animal which is mostly associated with traditional and religious activities in Sri Lanka. After cinnamon, Elephant trade was what which bought the largest revenue to the treasury during the European era of Sri Lanka (1505-1815). Hence, the objective of this research is to identify the causes for the demands of the Elephants in Sri Lanka and how it inclined during the European Era with reference to the primary and secondary sources. In Sri Lanka. Elephants were a royal monopoly. Thus, the power over elephant trade was passed to Portuguese after the death of King Dharmapala (1597) in Kotte Kingdom. Due to the huge demand for the elephants, there was a special organization in Kotte Kingdom regarding capturing the elephants, taming and providing food named as the “State Machinery”. After the Portuguese, The Dutch rulers too kept the Elephant business in Sri Lanka under the control of the government. However, with the advent of the British, the protection of Elephants was withdrawn.