He said the government was sticking to its 2006 target of 600,000 arrivals, up 9% from 2005.

Sri Lanka's air force struck rebel bases Wednesday in the east of the country after naval craft came under attack, and a pro-rebel Web site reported at least 12 people killed, threatening to return the country to civil war.

The government also closed the highway providing the only land link between Sri Lanka's south and rebel-held areas in the north.

The attacks came after a suspected rebel suicide blast in the capital on Tuesday reportedly meant to assassinate a top military officer, who escaped with injuries.

Ramanujam said although tourists may avoid the volatile north and east, which were opened up after the government and rebels struck a ceasefire in 2002, "overall arrivals are unlikely to be affected."

Tourist arrivals in the first quarter totaled 159,664, up 27.5% from the same period in 2005, reflecting a recovery from the December 2004 tsunami disaster that severely hurt the industry last year, according to Sri Lanka Tourist Board statistics.

Analysts have said it will be difficult for the government to meets its 2006 target because of the uncertainty over peace efforts.

A second round of peace talks in Geneva has been put off twice this month mainly due to a recent escalation of violence in the north and east.

Both sides met in February in Geneva to revive talks that had stalled in April 2003, but this week's developments have dimmed hopes of progress in peace efforts.

The violence had prompted foreign missions to warn against travel to the affected areas - some of them beach destinations popular among foreign visitors.