"We have not recently had a single case of people going from here in boats to seek asylum," he said. Now, instead, people travel to third countries by air and set off from there, he told The Australian.

He said that after the defeat of terrorism in May last year after 26-years, there was no reason for Tamils to seek asylum overseas. "There is no reason why anybody should leave Sri Lanka out of any fear. They have the freedom to live anywhere," he said. "When people come to know that countries are sympathetic and give them asylum, it is very difficult to stop.

"The Australian government has to be very strict on anybody to whom they are considering granting asylum."

The Defence Secretary said that some LTTE cadres escaped the final collapse of their military campaign. "We know there are a few groups trying to continue the fight in a different form.

"Obviously there could be a re-grouping in other countries. So the Australian government has to be very careful in deploying its intelligence agencies on this issue."

He said Sri Lanka had been working "very closely" with Australia, "especially on human smuggling", with visits by Australian police and naval officials.

Defence Secretary Rajapaksa said that the Sri Lankan government had been unable to match the "heavy propaganda and lobbying"of the Tamil diaspora, influenced by the Tigers, in many Western countries including Australia.

The government has invited opinion leaders of that diaspora to visit Sri Lanka's past conflict areas and witness the progress in reconstruction. Those who had gone, including some from Australia, had "returned pleased."