Kathmandu: Nepal's government on August 28 responded sternly to the unilateral withdrawal of ceasefire by the Maoist rebels, declaring the Nepal Communist Party (Maoist) and all its associate outfits "illegal terrorist organisation".

The government also declared all other organisations and individuals directly or indirectly related with the Maoist party as terrorists, a notice issued after the August 28 Cabinet meeting stated.

The decision was taken at the advice of the National Security Council, which met on August 28.

"The Maoists have started killing our people, there is no other way but to declare them terrorists," said Finance Minister Prakash Chandra Lohani, who was a government negotiator with the rebels.

The declaration comes after renewed violence by the Maoists, who followed up the unilateral withdrawal of ceasefire on August 27 by attacking two Royal Nepal Army Colonels in the capital on August 28, killing one of them.

PTI