A group of Tamils who were attempting to enter Sri Lanka from India were arrested at sea off Hambantota, the Navy media unit said.
The Navy said that 66 Tamils were on the boat at the time of the arrest and they had arrived from Kerala.
The group has been handed over to the CID for further investigations, a Navy spokesman said.
UPDATE: The Sri Lanka Navy, in a release, later said that it intercepted 66 Tamil persons illegally bound for Australia from India in a multi-day trawler.
The interception was made by a Fast Naval Patrol Craft attached to the Southern Naval Command 13 nautical miles off Hikkaduwa.
The arrested persons along with the trawler were brought to the Galle Harbour to be handed over to the TID for further investigations.