The Tamil Nadu assembly Wednesday urged India to introduce a resolution in the UN seeking a referendum in Sri Lanka to carve out a Tamil Eelam state.
A resolution moved by the house said that Tamils living in Sri Lanka as well as Tamils of Sri Lankan origin in other countries should take part in the referendum.
The resolution also urged India to stop describing Sri Lanka as a friendly nation and sought an international probe on war crimes during the war against the Tamil Tigers.
It said those responsible for the alleged war crimes should be tried before an international court.
The resolution also urged the Indian government to impose economic sanctions on the island nation until the "oppression" on Tamils there was stopped.
Speaking in the house, the chief minister referred to the widespread protests by students demanding action against Sri Lanka for killing Tamil civilians in the war against the LTTE.
She also spoke about the UN Human Rights Council resolution that pulled up Sri Lanka over accusations that many innocent Tamils were killed in the war against the Liberation Tigers of Tamil Eelam.
The Sri Lankan military crushed the LTTE and wiped out its leadership in May 2009, ending one of the world's longest running conflicts.
"India should stop calling Sri Lanka a friendly nation," Jayalalithaa said.
"There should be an international probe on the war crimes during the war (against the Tamil Tigers) and people responsible for that should be tried before an international court," she said.
Jayalalithaa has taken an aggressive stand against Sri Lanka in recent years, calling, among other things, an economic embargo against the island nation.
In response to Jayalalithaa's earlier calls, the Indian Premier League (IPL) has announced that no Sri Lankan player will play in any match that is held in Chennai.
Sri Lanka and Tamil Nadu are separated by a narrow strip of sea.
Earlier, Sri Lankan President Mahinda Rajapapaksa Wednesday warned of local and internationally attempts to scuttle peace in the island nation.
Addressing a Sri Lanka Freedom Party ceremony in Colombo, Rajapaksa said it was the right of all Sri Lankans to ensure that peace was protected in the country without falling prey to rumours, reports Xinhua.
He recalled that during the civil war, a lot of pressure was exerted by some countries on Sri Lanka.
But the government stood firm in achieving its objectives and protected the interest of its people in the process.
The president said the people in the north and south of the island were living together in unity following the defeat of the Tamil Tigers and such peace and unity must not be broken.
Rajapaksa's comments come within a week after a US-sponsored resolution was passed against Sri Lanka at the UN Humans Rights Council in Geneva.
India also voted against the island nation and said it would encourage Sri Lanka to expedite the process of broad-based, inclusive and meaningful reconciliation.
Days after the resolution was passed, the US warned that international action may be initiated on Sri Lanka if the island failed to implement the latest resolution adopted at the UN Human Rights Council.
The US said Sri Lanka should listen to the words of the international community and implement the plans that have never been implemented.
Since defeating the Tamil Tigers, Rajapaksa's government has been under pressure, especially from Western countries, seeking an independent probe into war crimes allegations.