Eight Tamil Nadu fishermen, arrested by the Sri Lankan navy on December 17, were released on Thursday with a severe caution.
The hearing took place at Kayts court, with Justice A Judson presiding.
The lawyer for the fishermen argued that they were forced to cross the border due to rough seas.
The latest incident is part of a long history of animosity towards Indian fishermen from the Sri Lankan navy, which has occasionally led to violent attacks and the arrest of Tamil Nadu fishermen.
Though the issue has been raised by New Delhi on several occasions, sporadic attacks on the fishermen continue.
The arrests are the first in a few months which has seen Indian fishermen chased away.
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