Sri Lankan military spokesman Prasad Samarasinghe said he was not aware of civilian casualties, but confirmed "heavy artillery and mortar bomb exchanges" in the embattled district of Batticaloa.
Medical sources said 65 bodies were brought to the main Vakarai hospital in the rebel-held part of the Batticaloa district.
"There are at least 65 bodies of blast victims who have been taken to hospital," a medical source in Batticaloa said. "At least 300 people have been taken to three hospitals in the district."
More than 100 were thought to be badly wounded, with the remainder suffering minor injuries.
The Tigers initially placed the death toll at 45 killed and over 125 wounded but had said they feared the casualties could be higher.

Copyright AFP (Agence France-Presse), 2006