The attacks were part of an escalating operation against the separatist rebels' de facto state in the north. In the fighting Wednesday morning, troops destroyed a network of bunkers along the front lines, south of rebel-held territory, the military said in a statement.

Rebel spokesman Rasiah Ilanthirayan was not immediately available for comment.Discuss this story Published: Tue Feb 5 23:58:03 EST 2008

``Reports from the Wanni and northern fronts reveal that terrorists are on the run into close perimeters of Kilinochchi and Mullaitivu districts,'' the Defense Ministry said in a statement late yesterday. The LTTE, in its latest communiqué, said an army advance was repulsed in the Manalaaru area yesterday, TamilNet reported.

The air force attacked an LTTE command center and communications base in the north in separate attacks yesterday, the ministry said. The LTTE said two civilians were killed when an area of Kilinochchi town was bombed, according to TamilNet.

Sri Lanka's government, marking the 60th anniversary of independence from Britain two days ago, said the LTTE is fighting its ``last battle.'' The Tamil Tigers lost control of the eastern region last July in the worst defeat in their 25- year conflict to create a separate homeland. More...Discuss this story Published: Tue Feb 5 20:19:32 EST 2008

''Two small SLN fiberglass boats went to the rescue of the 'disabled boat.' When the SLN boats were approaching the disabled boat, they were fired upon by the Indian boat and another Indian trawler which was prowling close by,'' it said.

It said Sri Lanka - Navy boats did not retaliate ''in order to avoid other Indian fishing boats being hit in the crossfire.''

The Sri Lanka - Navy had earlier sent boats to the area to investigate what its radars showed to be around 400 Indian fishing trawlers in the Sri Lankan territorial waters north of Thalaimannar.

It said it suspects the Sea Tigers, the naval wing of the Liberation Tigers of Tamil Eelam, were taking cover among Indian fishing trawlers in order to stage the attack.

The rebels, who are fighting for a Tamil homeland in Sri Lanka - 's north and east, often use the cover of Indian fishing boats to launch attacks on Sri Lanla Navy vessels, it said.

''They mingle with Indian fishing boats to avoid detection and launch attacks endangering the lives of the Indian fishermen in the ensuing retaliatory fire,'' it said, adding that they sometimes hijack Indian trawlers and boats to be used in attacks and to run clandestine arms smuggling activities.

The news of the loss of naval craft comes a day after Sri Lanka - celebrated its 60th anniversary of independence from the British.

Monday's celebrations were marred by a string of bomb attacks including one that killed 14 and wounded 20 when suspected Tamil rebels blew up a bus in Kebethigollewa in the North Central Province.Discuss this story Published: Tue Feb 5 11:25:41 EST 2008