Army headquarters said that troops had overrun an LTTE earth bund west of the Mullaitivu lagoon and brought the area under their control by Tuesday afternoon.

A senior official told The Island last night that ground forces were engaged in the final phase of the offensive on the eastern flank.

He said that among the arms and ammunition recovered in the past 48 hours were 1,400 rounds of artillery rounds buried by the retreating LTTE cadres.