Colombo (AsiaNews/Agencies) – Violent clashes in the Jaffna peninsula, northern Sri Lanka between the army and Tamil tiger rebels left 60 separatists and 11 soldiers dead.  Analysts say that the two sides are preparing for a major confrontation in the north, while the government has announced a budget which provides for record funding of the Ministry for Defence.

The official death tolls from yesterday’s clashes in Muhamalai do not coincide however with data provided by the rebels.  According to a statement released by the LTTE (Liberation Tigers of Tamil Eelam) at least 20 army soldiers were killed and a further 100 injured.

The situation in the north of former Ceylon, is rapidly deteriorating. And any chance of finding a diplomatic solution seems to be disappearing in what is now apparent to all to be full blown civil war. Yesterday the Sri Lankan president Mahinda Rajapakse asked parliament to support the 2008 budget which has destined record funds to the Defence ministry.  Rajapakse, who heads both the defence and finance ministries, has announced that 1.5 million dollars will be given to the military, a 20% increase on spending since 2007.  “We have no alternative if we want to root out terrorism” the head of state said in a live televised address.  Despite losses in the eastern areas, the separatists control a vast area in the North of the island.

For the last 20 years the LTTE have been fighting the military for autonomy of the mainly Tamil northern territories.  Up until now the conflict has caused 70 thousand deaths. The ceasefire signed in 2002 has been repeatedly violated and now is virtually defunct.