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| Heavy fighting in Sri Lanka north | Heavy fighting in Sri Lanka north |
| (9 minutes later) | |
| Dozens of Sri Lankan soldiers and Tamil Tiger rebels have been killed or wounded in fierce fighting in the north of the island, the two sides say. | Dozens of Sri Lankan soldiers and Tamil Tiger rebels have been killed or wounded in fierce fighting in the north of the island, the two sides say. |
| The clashes occurred near the front lines at Muhamalai in Jaffna peninsula. | The clashes occurred near the front lines at Muhamalai in Jaffna peninsula. |
| There were wildly conflicting accounts of the death tolls, which could not be independently confirmed. | There were wildly conflicting accounts of the death tolls, which could not be independently confirmed. |
| Earlier, the government announced a record defence budget. Observers say the two sides are preparing for major confrontation in the north. | Earlier, the government announced a record defence budget. Observers say the two sides are preparing for major confrontation in the north. |
| Fighting between troops and the rebels, who want autonomy in the north and east, has worsened in recent months. | Fighting between troops and the rebels, who want autonomy in the north and east, has worsened in recent months. |
| Wounded | |
| The battle at Muhamalai broke out on Wednesday morning, the army said. | |
| A statement said troops had "smashed over 20 rebel bunkers". | |
| "Latest reports emanated from the LTTE [Tamil Tigers] confirmed 52 Tiger terrorists were killed," the army said. | |
| It said 11 soldiers had died in the fighting, while 41 soldiers had been wounded and taken to hospital. | |
| Reports suggest the number of army wounded could be much higher. | |
| The rebels had a very different account. They said they had lost just one fighter in the clash, and that 20 soldiers had been killed. | |
| "The clash lasted about two hours, and they fell back to their original positions with heavy casualties," Reuters news agency quoted rebel spokesman Rasiah Ilanthiraiyan as saying. | |
| He said the army attack on rebel bunkers had been successfully repulsed. | |
| Each side frequently inflates losses sustained by the other side while downplaying its own, correspondents say. | |
| Despite losing territory in the east earlier this year, the rebels still control a vast swathe of land in the north. |