"There are also another 600 suspects in custody who would be sent for rehabilitation," he said.
The former rebels were released at the northern Sri Lankan town of Vavuniya. Dissanayake said President Mahinda Rajapaksa was keen to see the full completion of the rehabilitation process.
He said self-employment loans would be allocated to all rehabilitated former LTTE recruits.
They were made to undergo language and vocational training during the rehabilitation process.
Over 11,600 ex-LTTE cadres surrendered to the Sri Lankan security forces during the final stages of the war. They were being rehabilitated at the rehabilitation centers in Vavuniya, Colombo Page said.
The government had successfully re-integrated 10,490 ex- LTTE combatants, including 2,170 women into civil society following their rehabilitation.
The government says the last remaining group of former LTTE cadres will be released by mid-2012 after providing them the mandatory 12 months training.
The government has spent Rs. 2.5 billion on the rehabilitation of ex-LTTE cadres since the conflict ended in May 2009, it said.