COLOMBO, Dec 31: More than 1,000 soldiers were killed in the government's war against Tamil guerillas this year and a drought slowed Shri Lanka's economic growth. Still, 1992 was a better year, authorities said Thursday, reports AI’

The army's losses were made up by gains in territorial control In northern Shri Lanka where the troops have been fighting a 1 O-year-old Tamil insurgency for a separate homeland.

"The situation on the ground is much better than last year. We are tn a happy sit -uatlon now." said military spokesman Nalin Angamnjana

He said f,157 soldiers were killed and more than 2,000 in-

jured in the fighting. Government forces killed 2,876 rebels this year, he said, but the figure has not been independently confirmed.

Last year 968 soldiers were killed and the military estimated rebel deaths al 4,274.

The military worst setbacks this year occurred when two top commanders were assassinated by suspected rebels of the Liberation Tigers of Tamil Eelam. In August, a landmine killed the northern military commander, Lt. Gen. Denzil Kobbckaduwa, and eight other officers. In northern Shri Lanka. And tn November, a suicide bomber killed navy chief Vice Admiral Clancy Fernando tn Colombo.

Tamils form 18 per cent of Shri Lanka's 17 million'people. The rebels claim their people are discriminated against in Jobs and education by the majority Sinhalese who account for 75 per cent of the population and control the govern ment and military.

Ministers who reviewed the economy at a Cabinet meeting Wednesday recorded increases tn exports, tourism and Improvement in the banking sector, Cabinet spokesman Ranil Wlckremasinghe said.

"Despite the drought adversely affecting agriculture and industries, the overall economic situation was satisfactory," Wlckremasinghe told reporters.