EU slams Tigers for sea battle

The statement came two days after a Tamil Tiger suicide attack on a navy gunboat that killed its 18-man crew, dealing a blow to efforts to preserve a four-year ceasefire agreement now in tatters.

The European bloc, which has already warned it may impose a ban on the Liberation Tigers of Tamil Eelam (LTTE), said the escalation of violence undermined the prospects for opening Sri Lankan peace talks.

"The reckless behaviour of the LTTE in the last days can only contribute to a dangerous escalation that results in growing hostilities and jeopardises any possibility for future peace talks," the EU said in a statement.

It also urged the Sri Lankan government to show "as much restraint as possible" following Thursday's sinking of a navy gun boat that was escorting a ship transporting more than 700 soldiers.

The EU statement came hours after UN Secretary General Kofi Annan made a fresh appeal to Sri Lanka's government and Tamil rebels to end violence and resume Norwegian-brokered peace talks.

"The secretary general appeals to both the government and the LTTE to change course and bring the country back on a path to peace," UN spokesman Stephane Dujarric said in a statement.

Dujarric said the UN chief took note of a statement by Scandinavian monitors demanding that the LTTE "immediately cease all operations at sea.

The LTTE earlier rejected a ceasefire ruling against them by Scandanavian ceasefires monitors.