Three others are being held and two people have been charged as part of the investigation.
"Earlier today a 51-year-old man was arrested under the Terrorism Act 2000 at an address in the Swindon area on suspicion of the commission, preparation or instigation of acts of terrorism," a spokesman for London's Metropolitan Police told AFP.
"He is now in custody at a central London police station.
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"It's a long-term investigation into the alleged funding of procurement activity in support of terrorism overseas.
"The investigation is not linked to Al-Qaeda activity," he added.
Detectives were granted Monday an extra eight days to question the three men -- aged 46, 39 and 33 -- already in custody. They were arrested in raids on April 29.
The Liberation Tigers of Tamil Eelam, who are fighting for a separate Tamil state in the north and east of Sri Lanka, are designa