Sri Lankan economists say devaluation or a bailout package from the IMF is inevitable to head off a foreign exchange crisis where reserves have fallen to little more than six weeks of imports but the Central Bank (CB) is adamant that it has its own strategies to tackle the situation.

At least seven soldiers and 20 LTTE cadres were killed at Dharmapuram on the Paranthan – Mullaitivu road, as Tiger guerrillas continued to offer pockets of resistance to the advancing security forces who are closing in on the last positions held by them, defence sources said yesterday.