With the formation of the Ceylon Army in 1949, he transferred to the regular force with the rank of Major in the 1st Battalion, Ceylon Light Infantry which was briefly named the Ceylon Infantry Regiment. He also served as the Chief Security Officer of the Ceylon Government Railway from 1949 to 1951. He then served as the Army Recruiting Officer and Commanded the Recruit Training Depot. In 1956, he was serving as the Garrison Commander, Diyatalawa when he was dispatched to Ampara after communal rioting broke out with a detachment of Ceylon Light Infantry to assist the police to subdue the riots. Later he served as the Coordinating Officer for Batticaloa. Promoted to lieutenant colonel, he served as the commanding officer of the 1st Battalion, Ceylon Light Infantry from November 1959 to November 1962.1st BATTALION OF SRI LANKA LIGHT INFANTRY In February 1961, he was dispatched to Jaffna with the 1st Battalion, after the Federal Party launched a Satyagraha against the language policy of the government. The government having declared a state of emergency under the Public Security Act had Udugama break up the protest and arrest its leaders. Establishing a command headquarters, in the Jaffna Kachcheri, Udugama now promoted to the rank of colonel, was appointed Garrison Commander, Troops Jaffna in command of all army units in the Jaffna District which included the Ceylon Light Infantry and the Ceylon Sinha Regiment to ensure that the civil unrest by the Federal Party was stopped. He remained in Jaffna until February 1962, when he was recalled to Colombo to take up the post of Chief of Staff of the army following an attempted coup d'état by senior army and police officers.
