17 dead in Sri Lanka as fighting continues

At least 17 Muslim civilians have been killed and another 60 wounded during fierce fighting between Sri Lankan troops and Tamil Tiger rebels.

Military officials said shells landed on the schools where people were sheltering in the Muslim-majority town of Muttur.

At least 156 poeple have now died in fighting for control of a canal which Tamil rebels took control of last week, depriving thousands of families of water.

A Muslim leader has accused the government of firing the shells that fell on the schools.

The military denied the charge and accused the Tamil Tigers of firing the shells, which they say missed troops and hit civilians.

Meantime, the government in the capital Colombo has said it is ready to negotiate with the rebels to resolve their dispute.

- RADIO AUSTRALIA