Ayilyam Thirunal 's accession initiated a new era at Travancore. The Maharajah implemented many reforms and changes in Travancore, assisted by its Dewan T. Madhava Rao, which were all pleasingly beneficial to the state. The Travancore government had been struggling with its many debts and mismanaged department of finance at the time of its accession. Nonetheless, the government abolished several monopolies, tariffs, and cessations.The Dewan eventually announced in 1863 that Travancore had no public debt any more. Gradually more than 50 per cent of public servants' salaries were raised and their efficiency improved. Much development has been made in the areas of education, legislation, public works, medicine, vaccination and public health, agriculture etc.The Madras Government commended Travancore year after year. Important proclamations have been made, such as the Jenmi-Kudiyan Proclamation of 1867. The Maharajah was admitted to the Star of India Order in 1866, while his Dewan was admitted to the Indian Empire Order. In the same year, the British Government formally awarded Ayilyam Thirunal the title of Maharajah, who was so far only addressed as Rajah in formal communications. By 1872 Travancore was in a prosperous state, with 4 million rupees of surplus revenue.By now, however, the relations between the Maharajah and his Dewan had turned sour and the latter had been retired on a lavish Rs . 1000 pension per mensem, now styled Rajah Sir T. Madhava Rao. Dewan was now appointed to Seshayya Sastri, a position which he held until 1877. The new Dewan focussed on the state's road and infrastructure development. In 1874 a law class started at Maharajah 's College in Trivandrum, and other changes were made in the department of education. The Government took the first systematic Travancore census in 1875. In 1877 Seshayya Sastri retired to a Rs. 500 pension per mensem.
Seshayya Sastri was subsequently admitted to Star of India Order. He was succeeded by travancore resident Dewan Nanoo Pillai. During his premiership in Travancore, which lasted until 1880, irrigation was expanded, museums and other institutions were established, surveys were taken of land and agriculture, etc., and several other legislative and judicial reforms were adopted. Upon Ayilyam Thirunal 's death in 1880, his successor, Visakham Thirunal, retired Nanoo Pillay. Before that, Ayilyam Thirunal was admitted to the Indian Empire Order.