Sri Lanka Navy says twelve people on board LTTE vessels were killed

A spokesman for the Sri Lankan navy, D.P.K. Dassanayake, said it was the last sea-worthy vessel the Tigers had because seven other ships had been destroyed at sea earlier this year.

He said the vessels were used by the Tamil Tigers as floating platforms to store weapons and smuggle them.

But Mr Dassanayake also warned that with their elaborate overseas fundraising network, the Tamil Tigers could simply purchase more craft.

No independent confirmation of the navy's claim was available; there was no immediate comment from the Tamil Tigers.

Elsewhere in Sri Lanka, military officials say that eight Tamil Tiger rebels and one soldier have been killed in the latest fighting.

Correspondents say the conflict in the north has escalated in recent weeks.