Responding government of President Chandrika Kumaratunga, moved to suppress the LTTE by capturing the Jaffna peninsula from the Operation Riviresa in December 1995.

[1][2] On 30 March 1996, the Dvora fast attack craft P-458 was destroyed when it intercepted and struck an LTTE suicide craft attacking a navy troop transport off the coast of Northern Sri Lanka, its commanding officer Lieutenant Jude Wijethunge was posthumously awarded the Parama Weera Vibhushanaya, the highest medal for gallantry in Sri Lanka.

The night before, the 7:40 pm the Command Operations Room of the Western Naval Area of SLNS Ranagala received an anonymous call stating that a merchant ship outside the Colombo harbour was being boarded by sea pirates.

The LTTE International Secretariat in London issued two statements on 13 April 1996 claiming that Black Sea Tigers had carried out the raid and had destroyed three fast attack craft and three supply vessels in Colombo harbour.

Ashraff stated that the port would return to normal operations that afternoon, however the attack highlighted the risk LTTE posed to the Sri Lankan economy.

In January 1996, the LTTE Black Tigers carried out a suicide attack on the Central Bank in Colombo's business district killing 150 people and injuring thousands during the morning rush hour badly effecting tourism in Sri Lanka.

Ravi Karunanayake, then managing director of Rotonvander Freighting said that the attack could result in increased insurance costs as the Colombo harbour would be perceived as a terrorism-prone port.