"In the limited humanitarian operation on the west and south of Batticaloa, we have found 10 bodies of the LTTE cadres," spokesman Prasad Samarasinghe said. "Altogether, 23 Tigers have been killed in the fighting yesterday."

He said one soldier was also killed in the confrontation.

Last week the government said its troops had moved into the restive area without meeting any guerrilla resistance.

The claim came a day after 16 people were killed and 25 wounded when a bomb blast ripped through a bus in the island's east.

The defence ministry immediately accused Tamil Tiger rebels of setting off the bomb, which coincided with a key Buddhist holiday, while the guerrillas denied they were responsible.

In Geneva, the international Red Cross on Tuesday condemned a bus bombing on Sri Lanka’s eastern coast which left 16 people dead, including three children, and injured 25 others.