In a two-pronged offensive in Eastern Sri Lanka, government forces captured the villages of Ichchilampattu, north of Vaharai, and destroyed the LTTE's Forward Defence Line at Panichchankerni, south of Vaharai, the National Security Media Centre said.
The armed forces had thwarted an LTTE plan to launch an offensive from Verugal (south of Ichchalampattu) and repulsed a counter attack on Panichchankerni, it said.
The Air Force had assisted the ground forces by destroying mortar positions.
More than 30 LTTE cadres were killed, while the forces lost one soldier and 15 were wounded.
The LTTE's military spokesman, Rasaiah Ilanthirayan, said that the LTTE was on a defensive mode.
Seven of its cadres were wounded in the fighting in which the Air Force bombed Kathirveli, north of Vaharai.
According to the pro-LTTE website Tamilnet, the Sri Lankan Army lost two men and 22 were wounded.
The Sri Lankan Army had used the Tamil "paramilitaries", the term used by the LTTE to describe the breakaway Karuna group, the website said.