Sri Lankan police increased their security presence in Nayaru, Mullaitivu, citing security concerns for Sinhala fishermen who continue to fish the region.
Tensions have continued in the area after locals protested this month over police and local government inaction over illegal fishing by Sinhala fishermen.
Three Sinhala fishermen were arrested this week over the torching of Tamil fishermen's boats and huts in Mullaitivu on Monday, which destroyed hundreds of thousands of rupees worth of fishing equipment.
Whilst some of the Sinhalese settlers left the area on Thursday under heavy police escort, some have remained.