Defence ministry spokesman Keheliya Rambukwella said the ceasefire arranged and put in place by Norway from February 2002 had been violated more than 10,000 times and was virtually dead.
"There is no point in beating round the bush," Rambukwella told reporters when asked if the government accepted that the truce agreement was still on place.
"The government is ready to re-look at it."
"It has been violated over 10,000 times by the Tigers. Yes, the ceasefire is there to make the international community happy, but you know the reality," said Rambukwella who is also the minister of foreign employment.
He said the government reserved the right to take any action to safeguard its "national interests" despite any provision of the truce limiting military action against the Liberation Tigers of Tamil Eelam (LTTE).
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Both the government and the Tamil Tigers have carried out air attacks against each other despite the ceasefire expressly prohibiting aerial strikes.
Rambukwella said the m