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At least 85 people were killed and more than 400 wounded when a new military offensive met with ferocious resistance from Tamil Tiger rebels in northern Sri Lanka, both sides said.
Intense fighting halted the government's onslaught into rebel territory, which was backed by Israeli-built Kfir jets and naval gunboats, after about six hours, high-ranking military sources said.
Thirty-eight soldiers and six officers were killed with another 400 soldiers wounded, according to military sources who said that an unspecified number of troops were also missing.
Some 115 soldiers were airlifted about 400 kilometres (250 miles) to Colombo from Jaffna, officials said.
The Liberation Tigers of Tamil Eelam (LTTE) said they beat back the military and also captured the bodies of 75 soldiers. The Tigers placed their own losses at 10 killed.
“The LTTE recovered more than 75 bodies of Sri Lankan soldiers,” the Tigers said in a statement. “Efforts are now underway to hand over the bodies to the Sri Lankan military through the International Committee of the Red Cross.”
The renewed fighting hit Sri Lanka's hopes of a political settlement to end bloodshed a day after peace broker Norway announced a deal between the two sides to resume negotiations in Switzerland later this month.
The talks were to end an eight-month impasse in negotiations and save a tottering truce.
The United States welcomed the agreement to resume talks, “but is deeply concerned that ongoing violence in Sri Lanka is putting the agreement at risk,” State Department Sean McCormack said.
“We call on both sides to cease hostilities immediately and foster an environment that is conducive to holding productive discussions in Geneva,” he said in a statement.
“We also urge both sides to ensure that non-government entities involved in humanitarian relief efforts are provided access to conflict-affected areas. It is imperative that human rights be respected and protected in all areas of Sri Lanka,” he said.
Military officials said the casualties occurred in the Muhamalai area of the Jaffna peninsula on Wednesday morning. The warring parties blamed each other for the escalation.
Defence Ministry spokesman Prasad Samarasinghe said the operation was intended to neutralize a rebel build-up near the front line on the troubled Jaffna peninsula, 400 kilometres (250 miles) north of Colombo.
“There were attempts to infiltrate our defence lines in three places and we took counter-measures,” Samarasinghe told AFP. “They had been firing artillery at our positions in the past few days and last night we noticed a build-up.”
The military said its ground offensive, supported by warplanes, was a “defensive act” as a result of Tamil Tiger attacks. Naval gun ships were deployed to prevent rebels sending reinforcements by sea to the peninsula.
Thorfinnur Omarsson, a spokesman for the Norwegian-led Sri Lanka Monitoring Mission, said it had information that the fighting had died down by mid-day.
Norway has been working to save a 2002 truce and end spiralling violence, which has claimed over 2,200 lives since December, according to an official tally.
“The offensive, shattering peace hopes, comes few hours after an official announcement by Norway that parties had agreed to meet in Switzerland from 28 to 29 October,” the pro-rebel Tamilnet.com website said.
Some 60,000 people have been killed overall in the three-decades-old conflict between minority Tamils seeking an independent homeland and government forces.
October's planned talks represent the latest attempt to quell the recent bloody upsurge in violence.
“It is crucial that the government and the LTTE now use this opportunity to cease hostilities,” Erik Solheim, Norway's top peace broker, said.
Norway's statement on the talks was followed by an announcement by Japan, the island's main aid donor, that it will dispatch special envoy Yasushi Akashi on Sunday to try and boost peace efforts.
Sri Lanka's tiny stock market, which had gained on the back of possible peace talks, went into reverse Wednesday, falling just over half a percentage point.
The LTTE had warned it would reconsider its decision to go to Switzerland for talks if the military launched fresh attacks. The government had said it agreed to talks on the basis that it could defend itself from rebel attacks.