Reports indicate that the LTTE is active in government-controlled areas, extorting money from state employees, and moving with arms and ammunition in their possession.

The operations headquarters of the Ministry of Defence said in its situation report that "Some civilians in the general area of Mankerni, about 38 km Northwest of Batticaloa town on February 15th around 9 a.m. had reported to the nearby Army detachment, that money was being collected by LTTE cadres from state employees in areas held by the Army".

In one instance, the principal of the Mankerni primary school had been forced to pay SL Rs. 50,000/= (US$ 558).

Police in the area are investigating.

In a separate incident three persons who came on motorbikes without registered number plates had been stopped for checking by troops in the general area of Shanthiveli, about 20 km Northwest of Batticaloa on February 16th around noon.

When checked, troops had found two hand grenades, one cyanide capsule, two dog tags and sixteen rounds of T 56 ammunition and two bags with personal belongings in their possession.

After recording their statements, police at Black Bridge released these cadres to uncleared areas, confiscating the two hand grenades and sixteen rounds of T 56 ammunition.