US embassy cable - 04COLOMBO620

UNCLAS COLOMBO 000620 
 
SIPDIS 
 
SENSITIVE 
 
DS FOR DS/IP/ITA, DEPT FOR SA AND SA/INS, NSC FOR MILLARD 
 
E.O. 12958: N/A 
TAGS: ASEC, CASC, CE, MOPS, PGOV, PINS, PTER, LTTE - Peace Process 
SUBJECT: LTTE FACTIONS SQUARE OFF IN EASTERN SRI LANKA 
 
REF: A) COLOMBO 0607 B) COLOMBO/OPCENTER TELCON DATED 
     04/09/04 
 
1. (SBU) Embassy Colombo received information today that 
rival factions of the Liberation Tigers of Tamil Eelam 
(LTTE), located in eastern Sri Lanka, became engaged in two 
gun battles beginning early this morning April 9.  Three 
cadres, most likely from the northern faction, were reported 
killed when a group of about 16 crossed the Verugal River in 
the Batticaloa District at approximately 0315 hours local. 
The Verugal River has been the scene of a standoff between 
LTTE northern and eastern factions since eastern LTTE rebel 
leader Karuna split away from the northern LTTE (led by 
long-time leader V.Prabhakaran) in early March.  According to 
RSO contacts in the Sri Lankan Police Special Task Force 
(STF), this first infiltration was a diversionary feint for a 
later seaborne assault by an estimated 200 northern LTTE 
cadres at the coastal town of Kathiraveli, located about 8 
kms south of Verugal.  In the second attack, STF reported 
that eight of Karuna's men were killed.  STF reports a group 
of Karuna's men are currently encircled between Verugal and 
Kathiraveli, but Karuna was not there and is currently 
directing a counteroffensive to rescue his men.  The conflict 
is ongoing and it is not known to what level it might 
escalate. 
 
2. (SBU) Separately, the Directorate of Military Intelligence 
(DMI), has confirmed that forces loyal to Prabhakaran have 
commenced an amphibious assault on Karuna forces in the 
Verugal River area.  The DMI reported that the forces were 
exchanging mortar and small arms fire, resulting in some 
30-40 casualties on both sides.  At this point, the Sri 
Lankan Army is observing the situation but remains unengaged 
in the skirmish. 
 
3. (SBU) There is one American USAID contractor in 
Trincomalee, located just north of the contested area.  The 
Embassy DATT was also in Trincomalee to attend a SL Naval 
Academy graduation, but he departed Trincomalee for Colombo 
this morning and is out of the contested area.  RSO has been 
in communication with both officials and neither report signs 
of trouble in Trinco Town.  The Consular Section is in touch 
with the (very few) Amcits in the east.  The Embassy will be 
closed for holidays Friday, Monday, and Tuesday, but we will 
continue to monitor and report security developments in the 
east throughout the holiday period. 
 
4. (SBU) Comment: There has been some speculation that 
Prabhakaran might make a move to eliminate rebel leader 
Karuna once Sri Lanka's parliamentary elections concluded on 
April 2.  As flagged in Ref A, tensions have been quite high 
in the east for some time.  There have been reports over the 
past several weeks of a build-up of pro-Prabhakaran and 
pro-Karuna forces in the area along the Verugal River, and 
the current fighting appears to be the product of that 
build-up.  As noted above, how far this conflict might 
escalate is unknown. 
LUNSTEAD