COLOMBO, June 23: At least 18 Tamil militants and 17 Sri Lankan soldiers were killed and 100 others injured today in fierce fighting between the two sides as the army moved closer to a key northern town under rebel control.

Troops, backed by tanks and helicopter gunships, resumed their operation in the morning in two flanks to connect the Jaffna highway with the capital.

An army spokesman said troops moved closer to the rebel controlled town of Puliyankulam, 17 km from northern Omanthai town on the Jaffna highway.

``The offensive has been resumed in the face of heavy resistance from rebels but we are moving towards Puliyankulam,'' army sources said. Reports reaching here from northern Vavuniya town said 60 soldiers and 38 Liberation Tigers of Tamil Eelam (LTTE) cadres were injured in the attack.

Meanwhile, troops suffered heavily in an LTTE counter-attack at Omanthai, where eight Special Task Force commandos (STF) and seven militants were killed and 40 troops injured. Unconfirmed reports said 15 STF men were killed.

The Sri Lankan army repulsed the counter-attack which began early today at Omanthai town. The Tamil town was captured by the troops last month. The army casualties there are attributed to the heavy artillery bombardment by the LTTE.

The army offensive today came as a surprise to analysts as it was speculated that it would take a longer time to beef up its defences on the 17 km stretch of the highway it has captured so far following the attack by the LTTE on forward defence lines on June 10.

Security forces lost over 200 soldiers in the counter-attack on June 10 and another 300 suffered serious injuries. The LTTE said it lost only 80 fighters. The Sri Lankan army began its forward march from Periyamedu, a small town a few kilometres ahead of Omanthai, and Nedunkeni, a strategic town in the northeast which is close to the LTTE stronghold Oddusuddan.

Unlike the last time, troops this time began a simultaneous push from both towns putting heavy pressure on LTTE defences, army sources said.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.