Firefighter units of the Jaffna Municipal Council and the Sri Lanka Navy have doused the fire.
The ship, owned by a Sri Lankan businessman, was holding no cargo when the incident had taken place. The ship had been stranded in sand dunes after undergoing a technical issue.
However, it had transported cement between India and Sri Lanka before that.
Further investigations are underway.
(Pics : Madhava Kulasuriya - Vavuniya correspondent)