The EU for the first time also announced it was "actively considering" banning the rebels.

The Liberation Tigers of Tamil Eelam (LTTE) described the EU statement as "ill-timed" and "one-sided," the pro-rebel Tamilnet website said.

The LTTE's political wing leader S. P. Thamilselvan was quoted as saying the hard-hitting statement could strengthen hard-liners among the majority Sinhalese community.

"The (EU) declaration has caused irreparable damage to prospects for peace and has ruined the trust the Tamil people had in the international community," Thamilselvan said.

"As an equal partner seriously committed to a peaceful negotiation, we are concerned that this will impact the future progress of the peace process."

He denied EU charges that the guerrillas continued to recruit child soldiers and asked EU member states to reconsider their decision.

"We urge the European Union to desist from being partial to one party and to rescind its recent declaration," Thamilselvan said.

He said the EU's criticism of Tiger rebels for using "terrorism" was one-sided and unfair.

European diplomats here said that members, while mulling a full-fledged ban on the LTTE, had first agreed to take several other steps to crackdown on Tiger activity in their countries.

Diplomats said the EU statement was provoked by the August 12 assassination of Sri Lankan Foreign Minister Lakshman Kadirgamar. The murder further strained a shaky ceasefire brokered by Norway and in place since February 2002.

The government accused the Tigers of carrying out the killing but the rebels have denied involvement. The ethnic conflict has claimed more than 60,000 lives since 1972.

An LTTE delegation travelled to Europe in April and met senior officials and politicians from the Netherlands and Ireland.