Colombo  – Heavy fighting between government troops and Tamil rebels was reported in northern Sri Lanka amidst mounting casualties from both sides, military officials and pro-rebel sources said Wednesday.

The fighting occurred around the Akkarayankulam area, 365 kilometres north of the capital, where government troops fortified their positions before advancing into a town held by the Liberation Tigers of Tamil Eelam (LTTE).

Military officials said that at least 19 rebels and six soldiers were killed in Tuesday's fighting around Akkarayankulam.

But Tamilnet, a pro-rebel website, said at least 62 soldiers were killed in the clashes, a claim denied by the military.

"The LTTE are exaggerating the casualty figures. We have lost only six soldiers," military spokesman Brigadier Udaya Nanayakkara said.

Tamilnet said that Tuesday's fighting came after days of continued artillery and rocket launcher fire and several airstrikes in the Kilinochchi area, a rebel stronghold and administrative operations base.

The airstrikes and fighting forced thousands of civilians out of Kilinochchi town, about 15 kilometres north of Akkarayankulam.

Around 200,000 residents have been displaces in the northern rebel-held areas, and most of them are living in temporary shelters, open playgrounds and government buildings. (dpa)