Government forces have been steadily advancing into the remaining territory held by the Liberation Tigers of Tamil Eelam (LTTE) in the coastal district of Mullaittivu.
"Sri Lanka army Task Force Four operating in the Puthukkudiriruppu south yesterday (Friday) captured two LTTE camps located in the area," a military statement said.
The Tiger rebels, meanwhile, hit back by blasting a dam, which released a large volume of water from an irrigation tank at Kalmadu in Mullaittivu district, the defence ministry said.
"Terrorists have used high explosives and triggered the detonation, flooding a section of the A-35 main road at Dharmapuram and Visuamdu," the ministry said.
The military did not say if it had suffered any casualties in the latest fighting.
Sri Lanka's army chief, Lieutenant General Sarath Fonseka, said earlier this month he aimed to crush the Tigers by April, when the country marks the traditional Sinhala and Tamil New Year.
The Tigers have not commented on