The Sri Lankan army is to receive Rs 148 million towards the construction of a new army complex in Mullaitivu as an incentive to release 100 acres of private land in Kepappilavu.
The new complex is reportedly earmarked for 'state land'.
"Once the money is allocated from our Ministry, the private lands will be released within six months. But the representatives of the Keppapilavu village stressed that the six months plan was too long and wanted the lands released much earlier," the minister for resettlement, Mr Swaminathan was quoted by Ceylon Today as saying.
"We have conveyed that to the Army Commander and he has agreed to release the lands as early as possible," he added.
"The people had naturally demanded that those lands be released for them to resettle. They have legal documentation and they want their lands back."
"These people have struggled for the last five months and they occasionally went on hunger strikes. However, the Army has been very cooperative and agreed to release the lands."
Displaced families from Kepappilavu have launched prolonged protests calling for their lands to be returned to them.