COLOMBO, Dec 31: Norway is making fresh bid to revive a shaky peace process in Sri Lanka, reports here said today as the military claimed further territorial gains in a new offensive against Tiger rebels, reports AFP.

Norway's special envoy, Erik Solheim, was due to make new suggestions to break the impasse, including the establishment of an international panel to monitor a truce, the Sunday Leader newspaper said.

The peace process was deadlocked over the question of "de-escalating" the conflict, which has claimed over 60,000 lives in the past two decades.

The separatist Liberation Tigers of Tamil Eelam (LTTE) guerrillas and the Colombo government have said they were willing to enter "unconditional" talks, but the rebels maintain that de-escalation is a prerequisite.

The LTTE mounted pressure on the Colombo government by declaring a unilateral one-month truce from Christmas Day. asking the international community to push Sri Lanka into reciprocating it

Instead of holding its fire, the military mounted a major offensive on the sixth day of the ceasefire, claiming the recapture of a strategic bridge in the Jaffna peninsula.

The Sunday Leader newspaper said Norway's Solhelm is to undertake another visit to Srl Lanka with a set of new proposals

on breaking the stalemate.

It quoted "western diplomatic sources" as saving that Oslo had suggested setting up an international commitlee to monitor the preliminary phase of a "de-escalation" process.

"It is learnt that Norway, in consultation with some other nations displaying a keen interest and concern ox er resolxong the Sri Lankan conflict, has evolved a three-tiered plan, which xvould be made available to the Sri Lankan government for its consideration and possible approval," the Leader said.

Further press reports said under Norway's fresh initiative, the Tigers were to halt attacks in Sinhalese-majority areas while the gox'ernment xvould have to lift an economic embargo on areas held by the rebels before opening talks.

Colombo reported that its military offensive launched Just before the LTTE's ceasefire went into effect on Christmas Day claimed Ihe lives of more than 150 Tiger rebels for tire loss of 25 soldiers.

Folloxving fresh action on Saturday, defence ministry spokesman Sana th Karunaratne said troops have now taken two areas of more than 50 square kilometres (19 square miles) at Thanankilappu and Ariyalal.

'There wasn't much resistance and we are now in the process of consolidating and clearing the areas," Karunaratne said Sunday.