Sri Lanka's air force says it has attacked a Tamil Tiger boat yard, destroying attack craft used by the rebels.
A military spokesman, Major Upali Rajapakse, said Saturday that a number of insurgents were killed in the overnight attack.
A pro-rebel Web site accused the air force of dropping four bombs on a civilian boat yard, wounding two workers. The site said the yard was set up after the devastating tsunami in the Indian Ocean to build and repair fishing boats.
The European Union has called on the Sri Lankan government and Tamil Tiger rebels to immediately stop violence, saying it is threatening the peace process. In a statement, the EU says the violence will not solve the ethnic conflict in the island nation.
Some information for this report was provided by AFP and AP.