The US has provided over $3 million to three groups in Sri Lanka supporting those displaced by the war in Mullaitivu and Killinochchi districts.
The US Agency for International Development (USAID) awarded the funding to ZOA Refugee Care, Sewalanka and Practical Action to provide the basic needs many Sri Lankans urgently require, an embassy statement said.
The money will help nearly 50,000 Sri Lankans with basic services such as adequate shelter, access to potable water and proper sanitation, and food security.
The programmes will also put these individuals on the road to a sustainable future, with support to start generating needed income, and connect farmers and fishermen with markets.
"The US welcomes the work by the Sri Lankan government to quickly resettle the large number of internally displaced persons (IDPs) following the 26-year conflict," it said.
"However, we remain concerned about the rushed resettlement of the final IDPs to close the Menik Farm camp.
"Many of the most vulnerable families of the war-affected population in the north have been placed on land hastily cleared without adequate shelter, water and sanitation or provisions to continue their livelihood.
"Meanwhile, many long-term IDPs remain unable to return home or access basic services from the the government. Through its assistance, the US is helping resettled people move towards a better future."
Tens of thousands of civilians, dominantly Tamils, were displaced from northern Sri Lanka during the end stages of the war against the Tamil Tigers that ended in May 2009.