37 Chinese fishermen, arrested by the Sri Lankan navy on Monday, have been handed over to Chinese embassy officials in Trincomalee.
The men were arrested after they were caught fishing without permission of the coast of Batticaloa, prompting the Chinese embassy to urge for the immediate release.
Two Sri Lankans on the trawlers were also arrested and released on bail.
"The fault is not with the (Chinese) crew. The case is against the (Sri Lankan) owner now," Navy spokesman Kosala Warnakulasuriya told Reuters.
"We have handed over the Chinese crew to officials from the Chinese embassy,"