Suspected Tamil Tiger fighters in boats have attacked a naval base in the southern Sri Lankan tourist city of Galle, the military has said.
Suspected Tamil Tiger rebels disguised as fishermen have attacked a naval base in the southern tourist city of Galle, the Sri Lankan military says.
The suspected rebels posed as fishermen and at least two people had been killed, security sources said.
Two rebel boats exploded damaging navy vessels, while fighters in another two boats reached shore as shots were exchanged, security forces said.
The Dakshina naval facility is 100km (70 miles) south of Colombo in an area that has not suffered such attacks.
It is the first time a major tourist hub has been caught up in fighting.
An indefinite curfew has been imposed in Galle but there are reports of riots targeting shops of the Tamil minority.
In response, mobs attacked shops in Galle owned by the Tamil minority, police said. A curfew is now in place.
The incident comes two days after the country's worst suicide bombing, which killed almost 100 people.
On Monday, almost 100 people were killed in the country's worst suicide bombing.
Gunboats
Gunboats
The suspected rebels entered Galle harbour in about five boats on Tuesday, police and the military said.
The suspected rebels infiltrated the Dakshina naval facility hiding between fishing boats in the adjoining harbour, a navy spokesman said.
One was destroyed and two others exploded, damaging some naval equipment.
One boat was destroyed and two others exploded, damaging some naval equipment.
Fighting went on for about an hour, indicating that other boats successfully landed some suspected rebels.
Galle suffered badly during the Asian tsunami of 2004
Galle suffered badly during the Asian tsunami of 2004
An indefinite curfew had been imposed in Galle, said Media Minister Anura Yapa.
Another two vessels made it to shore where suspected rebels landed. Fighting went on for about an hour and a search operation for rebels was launched.
But police said some rioters from the majority Sinhalese community were targeting shops belonging to the minority Tamils.
At least three people were reported to have been killed and several injured.
The Tamil Tigers have made no comment on the latest incident.
As news of the raid spread, some rioters from the majority Sinhalese community attacked shops belonging to the minority Tamils, police said.
An indefinite curfew has been imposed in Galle.
A local hotel manager, Mr Shamim, told the BBC News website that the city is full of policemen and soldiers who are enforcing the curfew.
"Our guests have not stepped out today. It is all very quiet outside. We hope the situation will improve later in the day," he said.
Defence spokesman Keheliya Rambukwella told AFP news agency the boat attack was "a suicide mission". He said gunboats had been sent to the port to counter it.
Defence spokesman Keheliya Rambukwella told AFP news agency the boat attack was "a suicide mission". He said gunboats had been sent to the port to counter it.
Police using loudspeakers had urged people to leave their homes.
Galle, which is some 100km (70 miles) south of the capital, Colombo, is a popular destination for tourists. It also suffered badly during the Asian tsunami.
Galle is a popular destination for tourists. It also suffered badly during the Asian tsunami.
The BBC's Dumeetha Luthra in Colombo says the latest attack is a worrying development for the country's tourist industry, as such areas had been largely free of violence.
The BBC's Dumeetha Luthra in Colombo says the latest attack is a worrying development for the country's tourist industry, as such areas had been largely free of violence.
The Tamil Tigers have made no comment on the latest incident.
Bus blast
Bus blast
At least 2,000 people have been killed in violence this year in Sri Lanka, the military and ceasefire monitors say.
At least 2,000 people have been killed in violence this year in Sri Lanka, the military and ceasefire monitors say.
Monday's bombing resulted in more fatalities than any other suicide attack in Sri Lanka's long and bloody civil conflict.
Monday's bombing resulted in more fatalities than any other suicide attack in Sri Lanka's long and bloody civil conflict.
A military bus convoy was attacked near the town of Habarana, 190km (120 miles) north-east of the capital Colombo.
A military bus convoy was attacked near the town of Habarana, 190km (120 miles) north-east of the capital Colombo.
The rebels did not confirm or deny carrying out the attack but said it was justified.
The rebels did not confirm or deny carrying out the attack but said it was justified.
Both the government and Tamil Tigers say they will attend peace talks in Geneva next week, although few expect a breakthrough.
Both the government and Tamil Tigers say they will attend peace talks in Geneva next week, although few expect a breakthrough.
Before a ceasefire was sealed in 2002, more than 60,000 people were killed in two decades of civil war.
Before a ceasefire was agreed in 2002, more than 60,000 people were killed in two decades of civil war.
The Tamil Tigers are fighting for an independent homeland in the north and east of the country, and claim that ethnic Tamils have suffered decades of discrimination at the hands of Sri Lanka's Sinhalese majority.
The Tamil Tigers are fighting for an independent homeland in the north and east of the country, and claim that ethnic Tamils have suffered decades of discrimination at the hands of Sri Lanka's Sinhalese majority.
Have you been affected by this incident? Did you witness anything during or after it? Send us your comments using the postform below.
Have you been affected by this incident? Did you witness anything during or after it? Send us your comments using the postform below.