In this paper we construct an analogue of Iwahori--Hecke algebras of $\operatorname{SL}_2$ over $2$-dimensional local fields. After considering coset decompositions of double cosets of a Iwahori subgroup, we define a convolution product on the space of certain functions on $\operatorname{SL}_2$, and prove that the product is well-defined, obtaining a Hecke algebra. Then we investigate the structure of the Hecke algebra. We determine the center of the Hecke algebra and consider Iwahori--Matsumoto type relations.

We decompose the restriction of ramified principal series representations of the $p$-adic group $\mathrm{GL}(3,\mathrm{k})$ to its maximal compact subgroup $K=\mathrm{GL}(3,R)$. Its decomposition is dependent on the degree of ramification of the inducing characters and can be characterized in terms of filtrations of the Iwahori subgroup in $K$. We establish several irreducibility results and illustrate the decomposition with some examples.

We explicitly describe the decomposition into irreducibles of the restriction of the principal series representations of $SL(2,k)$, for $k$ a $p$-adic field, to each of its two maximal compact subgroups (up to conjugacy). We identify these irreducible subrepresentations in the Kirillov-type classification of Shalika. We go on to explicitly describe the decomposition of the reducible principal series of $SL(2,k)$ in terms of the restrictions of its irreducible constituents to a maximal compact subgroup.