Concern had been mounting over the fate of two boats reportedly intercepted by the Australian navy in Australian waters late last month.
There were claims that Australia could be breaking international law by screening them at sea and returning them involuntarily to a country in which they had a well-founded fear of persecution.
Under its policy of not commenting on "operational matters", Canberra refused to confirm the vessels even existed, keen to maintain its record of no boatpeople making it to Australia for six months.
Immigration Minister Scott Morrison today finally acknowledged a boatload of 41 people had been handed back to Sri Lanka while not commenting on the fate of the other one, reportedly carrying 150 people.
More From This Section
"At no stage was the vessel in distress and all persons aboard the SIEV (suspected illegal entry vessel) were safe and accounted for," he said in a statement.
Morrison added that they were transferred at sea to Sri Lankan authorities just outside the Port of Batticaloa yesterday.
"All persons intercepted and returned were subjected to an enhanced screening process ... To ensure compliance by Australia with our international obligations under relevant conventions," he said.
His other option was being sent to Papua New Guinea or Nauru for offshore processing, with Australia no longer processing boatpeople on its territory.
The government's initial refusal to confirm any boats had been handed back to Sri Lanka angered human rights groups, who claimed Tamils could face torture, rape and long-term detention if they were returned.
Morrison said of those transferred yesterday, 37 were Sinhalese and only four were Tamil.
Labour opposition immigration spokesman Richard Marles slammed the operation and questioned the processing.