Western news reports say the Sri Lanka government and the rebel Liberation Tigers of Tamil Eelam are set to announce an open-ended ceasefire in their 18-year civil war.

The reports say Prime Minister Ranil Wickremsinghe's government today (Thursday) approved a ceasefire document prepared by Norwegian mediators.

The historic pact, also approved by rebel negotiators, is expected to become official Friday, when the deal is announced formally in Oslo. The agreement sets the stage for the first direct peace talks in seven years.

There have been widespread reports in the past month that a ceasefire deal was near. Those reports have been bolstered by a series of goodwill concessions made by Mr. Wickremsinghe's government, which won elections in December after campaigning on a platform of peace and prosperity.

Last week, the prime minister said he believed a ceasefire was imminent, and that talks leading to a permanent peace could open in March or April.

In 1995, a similar ceasefire ended after 100 days, when rebels attacked two government gunboats in coastal waters.

But unlike the 1995 pact, Friday's deal will be monitored by Scandinavians, and will require both sides to give two weeks notice before backing out of the deal.

The Tamil separatist rebellion has raged in the country's north and east since 1983, claiming more than 60-thousand lives.

Since taking office, the new Colombo government has eased an economic embargo on rebel-held territories in northern and eastern Sri Lanka. It has also eased fishing restrictions in northern coastal waters and begun de-mining operations along major supply routes. Last week, the government re-opened the only land route to the rebel-held Jaffna peninsula.

Most details of the new deal have not been reported, and it remains unclear whether rebels have given up their long-standing demand for a separate homeland in the north and east.

Despite reports of the imminent deal, the Sri Lankan military says navy ships and Tamil rebel boats clashed early Thursday off the country's northeastern coast for the first time since the two sides began observing a temporary ceasefire in late December.

Officials say at least one navy sailor was killed in the fighting, which occurred off the main rebel base of Mullaitivu. They did not provide further details.

(afp, reuters, CNN/Asia Q andamp; A monitored by Anjana in Delhi, file)

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