The fund was launched by British Prime Minister David Cameron.
The fund will be provided over the next 2 years for the programme which will clear landmines from some of the most heavily mined areas of the country.
The programme will allow heavily contaminated land to be returned to local communities so that it can be used for building livelihoods, as well as schools and roads.
Speaking at a press conference to mark the end of his visit, Prime Minister Cameron said: "As part of our support for reconciliation efforts across this country, we will provide an additional 2.1 million pounds to support demining work in Jaffna, in Kilinochchi and in Mullaitivu districts - the location ofsome of the most chilling scenes from Channel 4's No Fire Zone documentary."
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