Muralitharan alias Karuna, who was also a minister in the previous government, was asked to appear before the Financial Crimes Investigation Department (FCID) this morning to record a statement on the alleged misuse of a government vehicles.
He was arrested after he appeared before the FCID, officials said.
Karuna was the former deputy leader of the LTTE and a trusted cadre of LTTE chief Prabhakaran. He later became a deputy minister in the Rajapaksa government in 2010.
He has been accused by human rights groups and UN agencies of being involved in human rights abuses during the civil war that ended after nearly three decades with the defeat of the LTTE in 2009.
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