One Sri Lankan inshore naval vessel was on fire in a sea battle with the LTTE off Kalpitya, 140 km north of Colombo, on Wednesday, the Defence spokesman Keheliya Rambukwela said.
The LTTE had attacked two of the coastal defence craft while they were on routine patrol in the morning. The Air Force was called to assist the navy, the spokesman said.
This is the second time that Kalpitya has been a scene of a naval engagement between the Navy and the LTTE's Sea Tigers.
The LTTE has been trying land explosives and other subversive material and personnel in areas like Negombo and Kalpitya, north of Colombo.
Bomb scare in Colombo schools
There was a bomb scare in two Colombo schools, the Holy Family Convent and the Carey School, on Wednesday.
The scare was triggered by anonymous telephone calls.
The police and the army bomb squad rushed to the schools and subjected them to a thorough search, but found nothing.
Police spokesman, Rienzie Perera asked the public not to spread rumours in the interest of children and their parents.
For the past few days the Sinhala and English press have been saying that the LTTE was going to target school buses.