Between 15 and 20 Sri Lankan sailors are feared dead after their fast attack boat was sunk by Tamil Tiger rebels in the worst military confrontation since a 2002 ceasefire.
Nordic truce monitors said their officials saw two Israeli-built navy Dvoras sunk by rebels during the clash off the island's northern tip, but military officials could confim only one boat sank.
"There were 15-20 navy personnel aboard. They are feared lost," said a senior military official.
He said the military had sunk three of a 15-strong rebel flotilla and damaged four other vessels. The air force bombed rebel territory following the naval battle.