Saturday's poll covers 65 administrative bodies, including 20 councils in the military-controlled districts of Jaffna, Kilinochchi and Mullaittivu where fighting raged till May 2009, according to the elections department.
National elections were held last year, including in the former war zone, but the local polls are the first since security forces declared an end to nearly four decades of ethnic conflict after wiping out the Tamil Tiger rebels.
Hours before polling opened on Saturday, one supporter of the ruling United People's Freedom Alliance was killed in the central Anuradhapura district following clashes between rival party supporters, police said.
In the former Tamil rebel strong of Kilinochchi, 330 kilometres north of the capital Colombo, local residents turned out to vote for the first time in years.
"The last time I voted was in 1982," said Kalli Amma, 66, who was displaced many times during the decades-long separatist war which ended in 2009.
"I hope my vote will help to elect officials who will help displaced people like me."
Local councils have limited powers over utilities and administrative matters in their respective areas.
A poll monitoring group, Campaign for Free and Fair Elections (CaFFE), said that Kilinochchi reported some of the worst and most disturbing cases of intimidation and harassment.
Late Friday, a group of unidentified armed men went round more than 20 villages trying to forcibly grab polling cards from voters, CaFFE said.
"The people who refused to give away their polling cards were beaten up and threatened to cut their throats out," CaFFE said.
However, polling around the main roads of Kilinochchi remained fairly peaceful with many voters turning up early to cast their ballots.
More than 440,000 people are eligible to vote Saturday in the north of the country.
Election monitors have reported over 100 poll-related incidents, including intimidation, assaults, abduction and misuse of state property.
Results are expected by Monday.
Copyright AFP (Agence France-Presse), 2011