Japan said it had given 3 billion rupees (23 million US dollars) to clear mines since 2003.
Ananda Chandrasiri, demining programme manager of DASH said in Japanese financing during 2010-2012 had helped clear two million square metres of land to re-settle war refugees already with more than 2,000 explosive remnants found and destroyed.
Japan said the new project will clear agricultural land, access roads and fishing areas.
Among staff who will work on the project will be war returnees including female single parents and young people who had no regular means of income during the war.
Japan has also funded the expansion of the Jaffna Teaching Hospital, construction of a power transmission line from Vavuniya to Killinochchi and the rehabilitation of resettled communities in Jaffna and Mannar districts.