The five occupants of the boat escaped unhurt and managed to douse the fire and bring the boat to the shore.
Police said the Lankan naval men allegedly hurled bottles and wood to chase the fishermen fishing near Katchatheevu.
'Q' branch wing of the police said they were investigating the incident.
The Sri Lankan president's office had on Wednesday announced the decision to release 86 Indian fishermen, arrested for allegedly poaching in Lankan waters, as a goodwill gesture to mark Prime Minister Narendra Modi's visit, the first by an Indian premier to the island nation in over 25 years.
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