He has told BBC that the government policy was not to withdraw military camps in the province.
According to him, military officials have told him during a recent visit to the north that certain military-acquired land could be returned to the civilians.
The state minister strongly rejected claims by MP Wimal Weerawansa and other opponents that the new government was trying to divide the country once again.
He also said a local investigation would be held into the crimes reportedly taken place during the final stages of the war.