Vetevendosje has to now select a new nominee for prime minister within 15 days.
The Balkan country has at least 70 confirmed cases and one death from Covid-19 - the disease caused by the coronavirus.
The parliament late on March 25 voted 82 in favor of the no-confidence motion, 32 against, with one abstention.More news: Dua Lipa moves forward new album release
Unable to protest on the streets because of coronavirus restrictions on gatherings, Pristina residents have been clanging pots and pans every evening from their terraces in a show of anger over the political squabbling.
One protester who managed to circumvent security outside parliament on Wednesday raised a banned at the entrance that read: "The most unsafe pandemic in Kosovo is politics".
Veliu had criticized the prime minister for not declaring a state of emergency amid the coronavirus pandemic.
"The prime minister made a decision to give an end to the deal with the LDK when he discharged a minister without first consulting with the partner", said Arben Gashi, head of LDK's parliamentary group.More news: US Freezes Overseas Troop Movements In Coronavirus Lockdown
The dismissal of the official follows several disputes with the republic's former interior minister over Kosovo's response to the coronavirus as well as territorial tariffs.
With EU-led talks between the neighbors going nowhere fast, a new USA envoy appointed by President Donald Trump has recently been working with Thaci to bring about a detente.
Kurti made a decision to partially remove the tariffs, prompting the United States to halt $50 million in aid.More news: United States indicts Nicolás Maduro and other top Venezuelan leaders for drug trafficking