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Looks about the same as http://www.megalithomania.com/show/site/92 in Carlow, Ireland. They used to pass babies through this stone to cure illness. It could be just large enough so you can touch the bones or whatever inside, there's a tradition of this in christianity too I remember reading somewhere.

This is speculation but I think there may sometimes have been a holed stone stood up in front of a barrow that was a symbolic portal. The hole was too small for an adult to negotiate - in one piece. Worse, I believe some of the pierced stones had rectilinear holes. (There's a barrow in Smithills that demonstrates this association - http://www.themodernantiquarian.com/post/34768 - and the perforated stone is incorporated into the wall in front).