Colonel Soosai AKA Thillaiyampalam Sivanesan is the head of the Tamil Tigers' naval wing known as the 'Sea Tigers'.
He is wanted by Interpol.
He was thought to have Perished in an air strike conducted by the Air Force but his family members have admitted that he is alive and in the No Fire Zone.
Early last morning the Sri Lankan Navy apprehended members of Soosai's family in a boat attempting to flee the country.
Unlike the other displaced Tamils, Soosai's family was not found on a boat starving or dehydrated.
The Navy found in their possession Rs. 575,000 ($4,882.73 USD) in cash, fifteen gold sovereigns and some expensive high energy imported chocolates.
The fact that Soosai put his family on a boat with cash and gold is a sign that the Tigers are facing a swift and humiliating defeat.
The family of Sea Tiger Wing leader ‘Soosai’ was captured by the navy off Mullaitivu early last morning, while trying to flee the country in a small boat, the navy said.
A navy official said a small boat had been detected off the Mullaitivu coast at around 3.00 am yesterday with eleven civilians aboard.
Later they had been taken to the Poduwakattu navy camp in Nilaveli for interrogation. During the interrogation, it was found that Soosai’s wife Satyadevi, son Suresh (16) and daughter Madhi (17) were in the group. Soosai’s sister-in-law and her son were also in the group. The latter were taken into custody by the navy.
The others in the boat were identified as the family of an LTTE intelligence leader.