U.N. says civilians killed as Sri Lanka battle rages

COLOMBO (Reuters) - Sri Lankan troops surged forward on Monday after seizing the last big town held by Tamil Tiger rebels, aiming to strike a death blow to the 25-year separatist insurgency, the military said.
Underlining the threat facing thousands of civilians trapped in the war zone, the United Nations in Sri Lanka said dozens of people had been killed or wounded over the weekend in shelling from sources it could not identify.
On Sunday the army announced the capture of Mullaittivu, the northeastern port the Liberation Tigers of Tamil Eelam (LTTE) seized in 1996 and turned into a major military operations and command centre.
That drove the Colombo Stock Exchange up 3.2 percent to a 10-week high, analysts said as fighting continued.
"The troops are consolidating their positions in Mullaittivu today, and the other troops are moving towards Puthukudiruppu and others are fighting south of there," military spokesman Brigadier Udaya Nanayakkara said, referring to an LTTE-held village.
With the loss of Mullaittivu, the LTTE is now confined to 300 square km of jungle in the Indian Ocean island's northeast, down from 15,000 square km when the war re-ignited in 2006.
That leaves the LTTE -- on U.S., EU and Indian terrorism lists -- with a handful of bases and village scattered across the jungles from which they have fought since the war kicked off in earnest in 1983.
"The LTTE has been destroyed as a military force, but they still have terrorist capabilities," said John Drake, a security analyst with AKE Group in London.