The indictments came as pressure mounted on Sri Lanka to make "concrete progress" on human rights ahead of next month's Commonwealth summit in the country.
Khuram Shaikh, 32, was on holiday from his work as a Red Cross prosthetics worker in Gaza, Israel, when he was attacked in a drunken fracas and murdered while his Russian girl friend was sexually assaulted on Christmas eve of 2011 in the southern holiday resort of Tangalle.
The main suspect was reportedly a ruling party local council chairman. He and eight of his associates were accused of attacking Shaikh.
The British government had expressed disappointment over the release of the main suspect - the local ruling party politician - from the custody.
Both British Prime Minister David Cameron and heir to the British throne, Prince Charles, reportedly want to raise the issue with Sri Lankan authorities during the Commonwealth summit.
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