Sri Lankan troops move in on Tigers, 62,000 flee

COLOMBO, (Reuters) – Sri Lankan soldiers battled  into the last redoubt of the rebel Tamil Tigers yesterday as  the exodus of people fleeing the war zone reached more than  62,000, the military said.
The International Commit-tee of the Red Cross warned the  situation was “nothing short of catastrophic” and urged both  sides to prevent further mass casualties among civilians,  saying hundreds had been killed in the past 48 hours.

The neutral agency did not assign blame to either side.
The operation gathered speed after the military’s noon  (0630 GMT) deadline for the Liberation Tigers of Tamil Eelam  (LTTE) to surrender passed without any word from the separatists, in what appears to be the final act in Asia’s  longest-running war.

The LTTE hours later vowed no surrender, despite being  massively outgunned by a military built up to wipe them out and  finish a conflict that has percolated since the early 1970s but  erupted into full-blown civil war in 1983.

“LTTE will never surrender and we will fight and we have  the confidence that we will win with the help of the Tamil  people,” Seevaratnam Puleedevan, secretary-general of the LTTE  peace secretariat, told Reuters by telephone.

Sri Lanka’s military, in what it dubbed the world’s largest  hostage rescue operation, went in to keep the stream of people  moving and give troops a clear shot at the LTTE and its elusive  leader Vellupillai Prabhakaran.

“So far 62,600 people have come out and still they are  coming,” military spokesman Udaya Nanayakkara said. Earlier, he  said soldiers had reached the beach, which meant they had  divided the Tigers’ last remaining area into two.

He denied civilians were being harmed.
The Tigers’ Puleedevan said Prabhakaran, the guerrilla who  since the 1970s has single-mindedly led a fight for a separate  nation for Tamils, was directing the fight in what the army set  up as a no-fire zone, but is now a last battleground.

After the conventional end  of the war, Sri Lanka will face  the challenges of healing divisions between the Tamil minority  and Sinhalese majority, and boosting a $40 billion economy  suffering on many fronts including a weakening rupee.

But yesterday for the second day running, the Colombo  Stock Exchange gained on positive investor sentiment over the  war effort and was at a more than two-month high.

Sri Lanka is seeking a $1.9 billion International Monetary  Fund loan to ease a balance of payments crisis and boost  flagging foreign exchange reserves, which Central Bank Governor  Ajith Nivard Cabraal said should be finished soon.

The United Nations and Western governments have urged the  military to renew a brief truce to negotiate the civilians’  exit, a plea the government has rejected on the grounds the  Tigers have dismissed all entreaties to let the people out.

Sri Lankan President Mahinda Rajapaksa again turned down  Britain’s attempt to send a special envoy and ruled out any  pause in military action during a phone call with Prime  Minister Gordon Brown on Monday, the president’s office said.