The release came as a positive response from the military to the long-standing demands of the Tamil people and supports the pledge of President Maithripala Sirisena, who vowed during his election campaign to work towards achieving reconciliation with the minorities.
The land and the fishing harbour border Sri Lankan military's Palaly Army Cantonment, the ColomboPage reported.
The Sri Lankan Army said in a statement that 187 families, who reside as Internally Displaced Persons since 1990 will now be able to return to their lands and resume their fishing livelihood after an absence of nearly 30 years.
According to the UN figures, up to 40,000 civilians were killed by the security forces during former president Mahinda Rajapaksa's regime that brought an end to the brutal conflict with the defeat of the LTTE in 2009.