Sri Lanka boosts war budget

COLOMBO (AFP) — Sri Lanka plans to increase its overall defence spending next year by 20 percent amid an increase in fighting between government troops and Tamil Tiger rebels, officials figures showed Sunday.

The government's initial budget estimates placed before parliament forecast defence spending would rise to 166.4 billion rupees (1.45 billion dollars) from an estimate of 139.4 billion rupees in 2007.

The military's capital spending reflects purchases of weapons and other equipment for the army, navy, the airforce and police, the Sunday Times newspaper reported.

The government plans to increase its total spending by 15 percent to 1.5 trillion rupees (13.2 billion dollars) next year, of which capital expenditure accounts for 790 billion rupees.

The government will present its "appropriation bill" to parliament on October 10, ahead of unveiling new revenue proposals on November 7.

Thousands have died and many more have been displaced since the Liberation Tigers of Tamil Eelam (LTTE) launched a campaign for an independent state in 1972.

More than 5,400 people have been killed since December 2005, after a 2002 Norwegian brokered truce unravelled.