What were reasons and outcome of Third Anglo Mysore War?

Tipu Sultan was hostile towards the British since the beginning. Mangalore Treaty of 1784, which was signed on the end of the Second Anglo Mysore war had an article regarding transfer of the Prisoners. Tipu did not honor this and kept the British prisoners with him. This was one of the reasons of the hostility. In the same treaty, the British had promised to not to enter into agreements with the Marathas and Nizam, but Cornwallis informally convinced them to not support if there was a war.

The immediate reason of the war which commenced in 1789 was that the local Dharamaraja of Travancore made some fortifications into the territories which were claimed by Tipu. In Cochin he purchased two forts from the Dutch, but Cochin was paying tribute to Tipu. Travancore was an ally of the British. So when Tipu attacked Travancore, the British attacked Tipu.

The Diplomacy of Cornwallis kept Tipu aloof from the Marathas , Coorg and Nizams. Lord Cornwallis led the British army in person, with pomp and a magnificence of supply which recalled the campaigns of Aurangzeb. The result was Tipu’s defeat.

The peace was restored by the Treaty of Shrirangpatnam which was signed in 1792. The terms of the Treaty were dictated by the British. As per this treaty:

1. Half of the territories of Tipu were snatched away from Tipu and divided into Marathas, British and Nizam
2. Tipu had to pay Rs. 3.30 Crore as war indemnity.
3. The Raja of Coorg got independences from Tipu.
4. Two sons of Tipu were delivered as Hostages.

This war eventually crippled the great Sultan, who once thought of making India free of the British. He fulfilled the conditions of the treaty but ever afterwards he burnt in the fire of revenge upon his British victors.