As in Jaffna and Vavuniya, there is an increase in LTTE attacks in Batticaloa District. In July, the police warned that six Black Tiger suicide units had infiltrated Batticaloa town. They advised politicians not to attend any public events. Three civilians, including Albert Sabapathipillai, 68, were killed in a Tiger cycle bomb attack near the police quarters in a high security zone in Batticaloa town on 14 July. Four policemen and 17 civilians were injured and five shops were damaged.
Two days later, the LTTE shot dead two policemen and abducted two others at Palameenmadu. The bodies of the abducted policemen were found in the Batticaloa lagoon the following day. The Tigers also attacked the Army at Kalmadu in Valaichenai on 21 July killing a soldier. Civilian P Pakiyarajah was killed during a clash at Kaluvankerni, near Eravur on 24 July. Reports say that the LTTE publicly executed Kannankudah residents V Sithamparapillai and K Thavarajah on 2 August accusing them of spying for the military.
The Razik Group joined the Army in a search of Eravur jungles, north of Batticaloa town on 11 July. Over 50 people in coastal villages were interrogated. The police arrested four people during a cordon and search operation of Batticaloa town on 12 July and handed them over to the Terrorist Investigation Division.
In Trincomalee District, the LTTE bombed and sunk the passenger ship Newco Endurance in the harbour, on 25 July. The ship was used for passenger service between Trincomalee and Muthur. Crew member Savarimuthu Arulnayagam, 54, was killed in the blast. Police believe that the bombing in a high security zone was carried out by a Sea Tiger diving unit.
Following the attack, a number of people were arrested in Trincomalee town. The next day, the Army ordered all the people in Uvarmalai suburb to re-register with the police. The Tigers also blasted several electricity towers and transformers in July disrupting supply to many areas.
Four soldiers were wounded in a Tiger landmine attack at Salapaiyaru on 7 July. Three civilians were injured by two cycle bombs on 23 July at Muthur and Serunuwara. In a another attack at Salapaiyaru on 31 July, four soldiers were killed and five others wounded.