Two solders were killed by Tamil Tiger rebels in Sri Lanka's northern Mullaittivu district on Monday morning.
Liberation Tigers of Tamil Eealm (LTTE) rebels at around 3 am attacked the troops who were conducting a foot patrol in the Welioya area, said a statement from the Media Centre for National Security.
"Troops retaliated and they confirmed that the Tigers sustained severe casualties but fled carrying their dead and injured," the statement added.
Government troops and LTTE rebels are currently being locked in fierce battles in the island country's north and east.
Nearly 4,000 people have been killed since December 2005 despite a Norwegian-arranged truce in place.