The political head of Liberation Tigers of Tamil Eelam (LTTE) in an interview with Reuters admitted the organisation had faced some setbacks in the war, but said their options for fighting back included sabotage against Sri Lanka's $32 billion economy.
The LTTE will target Sri Lanka's economy as part of their defensive strategy to counter a military offensive, said the Reuters report.
"The destruction of the economy is also an aspect of our defensive war. When the economy of the government is destroyed, its genocidal war against the people will also be weakened," Nadesan was quoted as saying.
An LTTE attack on the main international airport in 2001 dealt a heavy blow to the economy by hurting tourism revenues, a factor in a year that saw negative 1.4 percent growth.
Political critics say President Mahinda Rajapakse's administration has mismanaged the economy, which now is facing a host of problems, including high loan costs, a potential balance-of-payments deficit and low foreign currency reserves, reported Reuters.
However, allies of the president acknowledge the economic challenges, but do not expect it to extract too much political cost given widespread support for the war amid multiple military victories.