The video shows LTTE rebels in civilian attire firing at both security forces and fleeing hostages by a pedal gun fixed to an armour-plated vehicle.
In the background, civilians brought to build earth bunds are forced to camouflage the vehicle with leaves and branches.
The video clearly shows another LTTE man positioned to film any form of military retaliation towards the LTTE, taking cover among the civilians.
Meanwhile, Lankan President Mahindra Rajapaksa had earlier asserted that Sri Lankan troops have "almost wiped out" the 30-year-old "LTTE menace", even as the military launched a multi-directional manoeuvre to rescue civilians trapped in a tiny strip of land where the rebel remnants are hiding.
The war with the LTTE is ending and "final touches" are being given by the security forces in their campaign to eliminate the LTTE terrorism, Rajapaksa said.
"Heroic soldiers have almost wiped out 30-year-old terrorist menace, and we are in the final phase of putting the final touches to the brutal war," the President said at a ceremony to welcome newly sworn-in Western Provincial Council (WPC) Chief Minister and his Cabinet in Colombo on Monday.