The attack was the bloodiest battle for the Sri Lankan forces since the Vadamarachchi Operation in June 1987, which cleared the area of Nelliady of LTTE militants.

The attack on Nelliady army camp resulted in the Sri Lankan forces suffering 19 killed and 31 wounded, while LTTE executed its first suicide bombing which was carried out by Captain Miller.

Following the end of the Vadamarachchi Operation, the LTTE which had received a consignment of explosives from the Indian Research and Analysis Wing carried out several retaliatory attacks on the army, including detonating a landmine targeting an army truck carrying released detainees which killed the seven detainees and three soldiers as well as attacking the Telecommunications Department building in the Jaffna town with an improvised armoured truck laden with explosives.

The main thrust of the attack was launched along the road leading to the camp in the form of two explosive laden trucks.

The LTTE claimed it lost 3 militants, including 2 suicide bombers, and captured small arms, ammunition and a mortar launcher and killed up to 39-100 soldiers.