Lands in the Nanthikadal area of Mullaitivu will not be released, reports Uthayan.
Military officials told Mullaitivu villagers that land around the Nanthikadal lagoon is needed by the Sri Lankan military and any appropriated land will not be returned.
The lagoon and its banks, close to Mullivaikkaal, are known for being the location of mass atrocities committed by the Sri Lankan army during the final stages of the war.
In 2012, the Sri Lankan army completed construction of a luxury hotel on its shores to cater to 'war tourists'.
The announcement was made on Tuesday by soldiers at a Kepapilavu village meeting, while announcing the return of lands in Kepapilavu.
Reportedly, those with occupied lands in Nanthikadal will be compensated with land elsewhere.