Subramaniam Sivathai alias Thamalini was handed over to her parents at the Poonthottam Rehabilitation Centre in Vavuniya , said Commissioner General of Rehabilitation Brigadier Dharshana Hettiarachchi.
Thamalini from Kilinochchi had joined the LTTE in 1991 and became the head of LTTE women's Wing.
She was arrested by Sri Lankan army in May 2009 at an Army welfare centre for refugees and taken to Colombo for investigations.
Thereafter, she was held in the main Welikada prison and was charged with training LTTE cadres and establishing connections with Tamil Tigers overseas.
She was later transferred to the Vavuniya Rehabilitation centre to undergo the rehabilitation programme in order to re-integrate her into the society.
Thamalini received vocational training at the camp and had followed a training course in bridal dressing.
Opposition political sources said she may opt to become a ruling party candidate in the upcoming northern provincial council election in September.
Sri Lanka rehabilitated nearly 11,000 former LTTE cadres who surrendered during the last phase of the military campaign which crushed the Tigers, killing the top rebel leaders in 2009.