Friday, June 16 2006 10:24 Hrs (IST) - World Time -

Colombo: The Sri Lankan air force resumed aerial strikes against suspected LTTE positions today (June 16, 2006) ahead of plans for a mass funeral for 64 people killed in a bus bombing suspected to be carried out by the rebels yesterday (June 15, 2006).

Supersonic jets attacked rebel stronghold in the northern and eastern regions of the island, a military official said here adding there were no immediate reports of casualties.

The Tigers confirmed air strikes yesterday but did not provide any details of casualties or damage.

The air strikes came as government officials released the bodies of the 64 people killed in yesterday's claymore mine attack in an overcrowded civilian bus in the north-central district of Anuradhapura.

The state will meet the funeral expenses and pay compensation to the families of the victims, a government official in the area said when contacted by telephone.

"President Mahinda Rajapakse visited the area yesterday and ordered the immediate release of compensation to the families," officials said.

Meanwhile, international condemnation of the bombing continued while urging the parties to revive their faltering peace process.

Diplomatic sources close to the peace process said the Tiger bombings and retaliatory strikes had the potential to further escalate the conflict.

Sri Lanka's share prices fell by three per cent yesterday amid fears that the island was heading back to full-scale hostilities and the central bank today increased its policy interest rates to apply brakes on inflation.