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63 dead in Sri Lanka fighting

COLOMBO: On one of the worst days of fighting in the north, in which according to the military at least 63 persons were killed, Sri Lanka President Mahinda Rajapaksa unveiled a hike in defence outlay on the plea that it was essential to completely “wipe out terrorism.”

Mr. Rajapaksa, who holds the Finance portfolio, referred to the recent combined ground and aerial attack on the Anuradhapura air base and said elimination of terrorism was imperative for a political solution to the ethnic conflict.

Projecting the defence expenditure at Rs. 166.44 billion from Rs. The current 155 billion, Mr. Rajapaksa told Parliament that the government had to increase money supply (printing of notes) by 19 per cent in 2007 to meet the growing defence expenditure.

He claimed that the economy had shown resilience pointing to the seven per cent growth for second successive year.

The budget presentation coincided with a bloody day along the Forward Defence Lines (FDLs) in the north. The military claimed that at least 52 LTTE cadres and 11 soldiers were killed in pitched battles in the Muhamalai sector. The Defence Ministry said the “terrorist casualties were on the rise following counter attacks” at Muhamalai.

However, TamilNet said Tigers had repulsed an Army operation between Ki’laali and Mukamaalai early Wednesday. It quoted Irasiah Ilanthirayan, LTTE military spokesman as saying the army operation, launched with the support of the helicopter gun ships was thwarted. He said more than 100 troops were wounded and at least 16 killed in the attack.

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