The defence ministry said in a statement that troops backed by artillery fire had conducted a limited operation on December 31 in Pulipanchikal in the eastern Batticaloa district.

The statement quoted the clandestine Voice of Tigers radio as saying that 58 rebels were killed and 18 wounded in the confrontation.

The statement also said four soldiers were killed and eight received minor wounds during the operation.

There was no immediate comment on the confrontation from the Liberation Tigers of Tamil Eelam (LTTE), which has been fighting for a separate homeland for the minority Tamil community in Sri Lanka's north and east since 1983.