Approximately 160 acres of land in Nadukkuda in Mannar, including Tamil residential land, has been sold to a private Indian company for sand mining, according to local reports.
Photographs of the site taken before and after show concrete columns have been erected to create a perimeter around the land, which includes parcels individually owned by residents.
Barbed wire fences have been erected and trees have been felled, reported for the sand mining in the area. Tamils say at least 10 families have been affected by the illegal encroachment.
Sri Lankan police have reportedly been providing protection for the construction with, with residents who have made enquiries threatened with arrest.
Nadukkuda primarily is a fishing village with several fisherfolk Tamil communities bordering the coastline.
Though there has been no official confirmation, India has been steadily increasing its footprint in the North-East by funding several projects such as the Palali International Airport, in KKS and initiating ferry services to Tamil Nadu.
Recently the Sri Lankan government approved the Adani Green Energy firm to construct a wind farm that has been marred in controversy.