Sources said troops waiting in ambush had observed a youth and fired at him last night around 9.30 p.m. The youth, known as Thevan, had ran towards a nearby hut to escape firing.
The soldiers chased the youth, shot and killed him.
The mother, A.Yogeswary, 34 and her daughter, V.Nageswaray,14, who were in the hut were hit by the firing and died on the spot.
The SLA claimed the youth was a member of the Liberation Tigers and handed over his body at the Eravur hospital.
Unconfirmed reports, however, said the youth was a civilian from Kaluwankerni.
The bodies of Yogeswary and her daughter were handed over to the hospital by the Divisional Secretary.