At least 10 people have been killed, and more than 20 others injured in a suicide bomb attack outside a mosque in southern Sri Lanka, authorities announced.

At least one government minister was among the injured in the blast at the town of Akuressa, situated 160 km south of the capital, Colombo. Post and Telecommunications Minister, Mahinda Wijesekara is said to be in intensive care.

According to the Sri Lankan defence ministry, the blast was carried out by the Liberation Tigers of Tamil Eelam (LTTE), although no one has admitted responsibility so far.

The bomber appeared to have targeted six ministers as they walked in a procession towards the mosque, Sri Lanka's oil minister HM Fowzie, who was at the site, commented. The ministers were attending a ceremony to mark the birthday of the Prophet Muhammad when a bomber on a bicycle set off the explosion behind them, officials told the BBC.

"I heard a huge sound and then I saw people had fallen everywhere. They were covered with blood and flesh and the wounded people were screaming", a witness, Ahamed Nafri, said.

The blast comes as Sri Lanka's military continues its operation to defeat the Tamil Tigers in the north-east. On Tuesday the military said it had restricted the rebels to an area of less than 50 sq km. Heavy fighting is still going on.

Also on Tuesday, the government announced it had appointed the former deputy leader of the Tamil Tigers - known by his nom de guerre, Col Karuna - as a minister. Vinyagamoorthi Muralitharan is the new non-cabinet minister for national integration and reconciliation.

The Tamil Tigers have been fighting for a separate homeland for the ethnic Tamil minority in the North and East of the country for more than 25 years.

Government officials say they are confident the entire north-east can be brought under control soon. The rebels have vowed though to carry on their fight, and the latest blast shows they have maintained their ability to launch attacks far from their traditional strongholds.

On 20 February, two planes belonging to the Tamil Tigers attacked the capital, Colombo, killing two people and injuring about 45. About 70,000 people have died in the conflict in the past 25 years.