Sri Lanka in Fierce Battles With Tamil Rebels Ahead of Summit

By Cherian Thomas and Anusha Ondaatjie

Aug. 2 (Bloomberg) -- Sri Lankan forces fought with Tamil Tiger rebels in the island's north before a meeting of South Asian leaders in the capital, underscoring the decision to shift the summit to Colombo because of security fears.

At least 11 soldiers and nine Liberation Tigers of Tamil Eelam rebels were killed in the fighting yesterday in the Mullaitivu district, about 250 kilometers (155 miles) north of Colombo, military spokesman Udaya Nanayakkara said in a telephone interview. The LTTE declared a 10-day cease-fire to coincide with the South Asian Association for Regional Cooperation's summit, even as the group said they will be forced to take defensive actions against military advances.

Sri Lankan President Mahinda Rajapaksa may open the two-day summit today with an appeal for assistance in fighting terrorism from the other seven leaders in the region, home to the most people affected by conflicts, according to the World Bank.

Sri Lanka's army is driving LTTE forces from camps in the north after capturing the east a year ago in the worst defeat for the rebels in their fight for a separate homeland in the island nation. Rajapaksa said July 13 his government is ready for talks with the LTTE if the rebels disarm.

Rajapaksa's government formally ended a 2002 cease-fire in January after stepping up attacks on the rebels when two rounds of peace talks failed in 2006. The group is designated a terrorist organization by India, the U.S. and European Union.

More than 70,000 people have been killed in the conflict in the country of 20 million people where Tamils make up 11.9 percent of the population and ethnic Sinhalese almost 74 percent, according to a 2001 census.

Terrorism Accord

Rajapaksa is expected to join Indian Prime Minister Manmohan Singh, Pakistan's Yousuf Raza Gilani and Saarc's other leaders to sign an accord to share intelligence on terrorism at the annual two-day summit that starts today. The agreement calls on members to give each other ``the widest possible measure'' of legal assistance in fighting crime.

Saarc, formed in 1985, also includes Nepal, Bangladesh, Bhutan, the Maldives and Afghanistan.

Economic growth slowed for the first time in a year in the first quarter as the escalating violence, including bomb attacks in Colombo, curbed spending.

India and Sri Lanka have increased naval patrols in the Palk Strait between the countries to combat the LTTE.

The Sri Lankan government shifted the venue of the summit from the central hill town of Kandy to Colombo and has deployed about 20,000 police and security personnel around the capital.

To contact the reporters on this story: Cherian Thomas in New Delhi at cthomas1@bloomberg.net; Anusha Ondaatjie in Colombo at anushao@bloomberg.net