Mine blast kills 10 soldiers in Sri Lanka, market plunges

Suspected Tamil Tiger rebels killed 10 soldiers and wounded eight Tuesday when they set off a powerful landmine in northern Sri Lanka, a military official said.

Suspected Tamil Tiger rebels killed 10 soldiers and wounded eight Tuesday when they set off a powerful landmine in northern Sri Lanka, a military official said. The soldiers were ambushed with a Claymore mine at Puloly in the Jaffna peninsula, where 18 soldiers were killed in two similar attacks earlier this month, the official said by telephone.

"The soldiers were in a convoy transporting lunch for their colleagues when they were hit," the official said.

Four days ago, the Tigers were accused of another ambush in the northwest of the island that killed at least 15 sailors and wounded an equal number.

The escalation of violence compounded fears that the country could be slipping back to war, and prices on the tiny Colombo Stock Exchange fell by a hefty 6.

83 percent Tuesday, the first trading day after the Christmas holidays.

The benchmark All Share Price Index shed 138.

82 points to close at 1,894.49, as brokers said investors were jittery about possible continued violence.

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