Writing by Bryson Hull Editing by David Fox World

Analysts have said the Tigers are shifting their heavy weapons and toughest fighters to the eastern port of Mullaittivu and a few towns in the jungle between there and the central A-9 road. The next big army target is Elephant Pass, the gateway to Jaffna. Winning it is at once a matter of strategy and pride to the military, which suffered one of its worst losses of the 25-year war there in 2000. If the military takes Elephant Pass and few doubt they will all of its firepower can be aimed at Mullaittivu for a final showdown.ARE THE TIGERS NOW TOOTHLESSMany analyst say the rebels are down to around 2,000 capable fighters and have little future as a conventional force. The military is now much better equipped and trained than in the past, has President Mahinda Rajapaksa's full backing and experienced, confident leadership. But the LTTE still can carry out suicide bombings in the capital Colombo, and did so hours after the government announced Kilinochchi's fall, killing three airmen at air force headquarters Many fear more of the same.

Fonseka has said he expects the hardest core of the Tigers to go underground and conduct hit-and-run attacks once the ground war nears its end. He also said the army is ready for that.WHAT ABOUT CIVILIANS IN THE WAR ZONEAid agencies estimate there are around 230,000 Tamil civilians who have fled their homes in the war zone, and are suffering without much shelter. Rights groups last month accused the Tigers of forcibly conscripting them as fighters or laborers The LTTE denies that. Many are afraid of government refugee camps where they are scrutinized as potential LTTE sympathizers. After the Mumbai attacks by Islamist gunmen made terrorism a major election issue in polls due by May, he is unlikely to be the least bit sympathetic. He and Rajapaksa have agreed that the underlying grievances of the Tamil people must be dealt with politically, a view shared and urged by much of the west.DOES MILITARY SUCCESS MEAN EARLY ELECTIONSWith the military riding high, Rajapaksa has plenty of political support.

The UNP's main criticism is over the government's handling of the $32 billion economy.WHAT ABOUT THE ECONOMYAs predicted, both the Colombo Stock Exchange and the sliding rupee currency got a boost from Kilinochchi's capture. Both have recorded impressive performances in that time, but have been hampered in the last year by a gloomy macroeconomic climate. Key exports like tea and garments are also hit by the global slowdown. Despite a sovereign rating cut last month, most analysts say default is unlikely. The government said growth was likely to slow to 5.0-5.5 percent this year.IS ANY OF THAT A RISK TO RAJAPAKSANot really, especially with popularity for the war so strong. Rajapaksa's mainly rural power base has been largely shielded from economic woes through his populist budgets and development projects. Rajapaksa is also counting on a flood of post-war reconstruction money to come in after fighting ends.(Writing by Bryson Hull; Editing by David Fox) World.

Silverstone Circuits Limited confirmed that it has a contract to run the British Grand Prix for the next 17 years, ensuring the prestigious event's future in the Formula One.The deal, worth around 300 million, wasannounced Monday morning after Bernie Ecclestone agreed to forgo fees of afurther 60 millionthe only major stumbling block on the race's future.To secure the necessary finances for the upgrades the circuit needs, Silverstone needed a long-term deal to give them the security to proceed, in addition to reducing or removing the 7 percent annual increase on fees to Ecclestone.As part of the agreement, Silverstone will undergo a modernisation of the facilities including the rebuilding of thepit lane and paddocks to bring them up to standard with facilities at other circuits.With just seven months until the race, Silverstone has a strict timetable and work will begin immediately after Christmas.While I expected a deal to be announced, I amsurprised that Ecclestone has finally awarded an unprecedented 17-year deal to Silverstone, despite his warnings that F1 does not need a British Grand Prix.Of course, he had originally gave Donington a 17-year deal before financial problems wrecked any hopes they had of developing the Leicestershire circuit, nevermind host a race. But traditionally, Silverstone has had to work with five-year deals with the uncertainty preventing them from exploring new financial agreements.Silverstone MD Richard Phillips said, "We've always had the belief the British Grand Prix was an importantcornerstone of Formula One but, with Bernie, you're never quite sure. At theend of the day, though, you have to have a British Grand Prix."We've now got to sell a lot of tickets, to get out there and do similar sortsof numbers as we did this year when we had 230,000 people there over thethree days, and promote the event."Ecclestone said, "This will ensure the British Grand Prix is included on the Formula One calendar for many years to come, which is something I've always wanted to happen."But being the man he is, he couldn't help but get a dig in at the British Racing Drivers Club (BRDC) Its been a long and tiring nonsense, he said. They could have done thiswhole thing months and months ago.BRDC president Damon Hill said, "This announcement is tremendous news. It really does cement Silverstoneas a motor sport venue and is incredibly satisfying for the BRDC to cementits relationship with F1. We want Silverstone to be retained as a place formotor sport, for motor racing of all sorts, but significantly the BritishGrand Prix."But while a deal and fees have now been agreed upon, let's not get too carried away by this.