The bodies of Jaga Madakami and Tulsi Behera were found near Bhejangwada area, Superintendent of Police Akhileswar Singh told IANS.
About 30-40 rebels had kidnapped six people, including a village ward member, Thursday from Chintalwada and Ramaguda village, about 700 km from state capital Bhubaneswar. They set free three of them Friday while one person is still being held captive, the police official said.
Maoists are active in more than half of Odisha's 30 districts. Malkangiri is considered to be one of their strongholds. The killings come a day after the rebels shot dead a 65-year-old man at a village in the same district.
Singh said the Maoists have lost their grip on people due to the setting up of a Border Security Force (BSF) camp in the area. Besides, massive combing operations in the region have bolstered the confidence of the people.
The rebels are also frustrated because people are not cooperating and have, therefore, resorted to terror tactics like abduction and killing, he said.