He was first elected State Council of Ceylon from Matale in 1936, he had been wounded in the head when he was shot at by a supporter of his opponent. He briefly served in the war cabinet. He contested the 1st parliamentary election in 1947 from the Matale electorate as an independent but lost to V. T. Nanayakkara. He joined S.W.R.D. Bandaranaike in the formation of the Sri Lanka Freedom Party, but left soon after its formation to contest 1952 general election as an independent and won defeating V. T. Nanayakkara who had contested from the United National Party. Joining the United National Party, contested the 1956 general election from Matale from the United National Party but was defeated by Nimal Karunatilake the Sri Lanka Freedom Party candidate. He won back his seat in the March 1960 general election and was appointed Minister of Education and Cultural Affairs by Prime Minister Dudley Senanayake in the short lived government that fell three months later. Aluwihare retained his seat in the July 1960 general election while the Sri Lanka Freedom Party won the election and established a government. He was diagnosed with cancer soon after and died on 22 January 1961, while in England for medical treatment. His nephew Alick Aluwihare succeeded his seat in parliament.[6]