The New Nation - Internet Edition

AFP, Colombo

Sri Lankan forces killed at least 60 Tamil Tiger rebels for the loss of 11 of their own men in heavy fighting in the Jaffna peninsula, the defence ministry said. Security forces moved ahead of their defences and advanced into an area held by the Liberation Tigers of Tamil Eelam (LTTE) to neutralise an offensive by the rebels on Wednesday, the ministry said.

"The number of LTTE cadres killed in the Muhamalai (Jaffna peninsula) attack has risen to 60 according to latest LTTE communication," the ministry said, revising its earlier figure of 52 Tigers killed.

However, the Tigers said only one of its fighters had been killed and claimed that at least 23 government troops died during two hours of intense fighting that also involved helicopter gun ships.

"We had better command and better tactics," LTTE spokesman Rasiah Ilanthiriyan told AFP from the rebel-held town of Kilinochchi. "There are times when we suffer more than the army, but certainly not in this case."

He said their intelligence sources indicated that the military's casualties amounted to more than 140 dead or wounded. The army said 41 soldiers were wounded.

No independent confirmation of the wildly conflicting claims given by both sides was available.

Wednesday's fighting came as President Mahinda Rajapakse presented the country's budget for 2008 with a record amount of money being allocated for defence, mainly to fight the Tamil Tiger rebels.

The defence budget was increased to 166.44 billion rupees (1.49 billion dollars) for 2008 from a revised 155 billion rupees this year, according to figures tabled in parliament Wednesday.

"It is essential to completely wipe out terrorism," Rajapakse told parliament. "Otherwise there can be no political solution," he said in a speech broadcast live on television.

The separatist Tamil Tiger rebels did not appear interested in a negotiated settlement to the tropical island's drawn-out ethnic conflict and had to be defeated, he added.

"I wish to emphasise that the fight against terrorism is not a fight against the Tamil people," the president said.

Tens of thousands of people have died since the Tamil Tigers launched their campaign for an independent Tamil homeland in 1972.

The government and rebels had agreed to a Norwegian-brokered truce in 2002, but the peace process began to unravel from December 2005.

Another report adds: The president of Sri Lanka said Wednesday there would be peace on the troubled island only after more fighting to crush separatist rebels as he unveiled the nation's biggest-ever war budget.

"It is essential to completely wipe out terrorism," President Mahinda Rajapakse told parliament, estimating defence spending this year of 155 billion rupees (1.4 billion dollars) rising to 166.44 billion in 2008.

"Otherwise there can be no political solution," he said in a Sinhalese speech broadcast live on television.

The separatist Tamil Tiger rebels did not appear interested in a negotiated settlement to the tropical island's drawn out ethnic conflict and had to be defeated, he added.