About 408 individuals voluntarily returned to the Island country during the first three months of 2012, nearly a third less than the same period last year when 597 refugees returned, according to latest UNHCR statistics.
"It is difficult to say exactly why the numbers are lower, but part of the reason could be the suspension since October last year of the Colombo-Tuticorin ferry service from India. Refugees told us they preferred returning by sea as they could bring more of their household goods home with them," UNHCR's Representative in Sri Lanka Michael Zwack said.
UNHCR stepped up its voluntary repatriation programme at the start of 2011, to support an increasing number of individuals who were returning home.
However, refugee returns slowed down towards the latter part of the year.
A total of 1,728 Sri Lankan refugees returned under UNHCRs facilitated voluntary repatriation programme in 2011.
Most refugees are returning from government-run camps in the South Indian state of Tamil Nadu.
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Small numbers have also returned from Malaysia, Georgia, Hong Kong and the Caribbean Island of St Lucia.
UNHCR provides refugees returning home with a standard reintegration grant as a first step towards helping them restart their lives.
Refugees are mainly returning to former battle zone areas in the north and east Trincomalee, Mannar and Vavuniya districts while smaller numbers are also returning to Jaffna, Kilinochchi, Batticaloa, Colombo, Ampara, Puttalam and Kandy.
UNHCR said according to the latest Indian government figures as of December 2011, there are 68,049 Sri Lankan refugees living in 112 camps in Tamil Nadu and another 32,467 living outside the camps.