Former Deputy Minister Vinayagamoorthi Muralitharan alias Karuna Amman filed a motion at the Colombo Chief Magistrate's Court seeking bail under special circumstances.
He was recently remanded for the alleged misuse of a state vehicle from January 2015 to August 2016.
However, Karuna's lawyers informed court that he faces security threats in prison and that he had been in communication with the Presidential Secretariat on the handing over of the vehicle.
The Magistrate set the order on releasing Karuna on bail for Monday.
Karuna was a military commander of the LTTE before breaking away in 2004. His breakaway group played a significant role in the defeat of the LTTE. Karuna led a party of his own, the TMVP, and then joined the Sri Lanka freedom Party.