Colombo (PTI): Sri Lanka on Wednesday said that its troops were on the verge of overrunning Kilinochchi, the Tamil Tigers' political and administrative capital with its forces reported to be almost on city outskirts.

A defence ministry spokesman claimed that " the Tiger rebels were on the retreat.. and were moving out of the town."

"The fall of Kilinochchi is imminent," defence ministry spokesman Keheliya Rambukwella told journalists in Colombo.

Losing Kilinochchi would be devastating for the LTTE who over the past few months have been pushed out of all major towns in the Tamil-dominated areas in eastern and northern Sri Lanka.

The rapid advances by government troops in Jaffna, Kilinochchi and Mullaitivu came as the LTTE supremo Velupillai Prabhakaran is expected to make an important announcement to mark the Tigers' Hero's Day on Thursday.

The defence ministry also said that his soldiers were also closing in to another strategic rebel-held coastal town of Mullaitivu, where, according to intelligence reports, the bulk of LTTE forces are concentrated.

Rambukwella also said that the capture of Kilinochchi would be announced by President Mahinda Rajapaksa.

The Sri Lankan Head of State on Wednesday once again called the LTTE to surrender and lay down their arms.