Fighting resumes after failed Sri Lanka talks

Heavy artillery fire resumed in northern Sri Lanka today hours after peace talks between the government and Tamil Tiger rebels…

Heavy artillery fire resumed in northern Sri Lanka today hours after peace talks between the government and Tamil Tiger rebels collapsed, triggering fears of a deepening civil war.

Residents in the army-held Jaffna peninsula said fierce shelling began before dawn, a reminder of months of fighting that killed hundreds of civilians, troops and rebel fighters in the run-up to the talks in Geneva.

The abortive talks ended on Sunday with both sides meeting separately with mediator Norway before failing even to agree on whether or not to meet again for talks in the future.

That was a worst-case scenario for many analysts, diplomats and residents, who now fear a resumption of late July's heavy fighting that left hundreds dead, the worst violence since a 2002 cease-fire.

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The Colombo stock market, which gained ahead of the talks on hopes of a breakthrough, fell 1.15 percent on Monday.

Officials said the talks ran aground over a central rebel demand that the government reopen a highway that crosses through rebel territory to Jaffna, which is cut off from the rest of the island by Tiger lines and where food is in short supply.

The road - nicknamed the "Highway of Death" because of past battles fought over it - was closed in August because of fighting, leaving thousands of people stranded, many of whom are still waiting to be evacuated from the peninsula by ship.