Anbarasan Ethirajan
BBC News, Colombo
**At least two children have been killed and seven others injured in an explosion in the northern Jaffna peninsula, police officials say.**Police believe the pupils had been playing with an unexploded grenade they had found by the roadside, which exploded when thrown.
Two boys, aged nine and 10, were killed and five girls and two boys injured.
The area saw intense fighting between security forces and Tamil Tiger rebels in recent years.
The government has been working with international agencies to de-mine the former war zone.
Meanwhile, a police spokesman in Colombo said they had raided a private bank and seized more than $500,000 (£319,242) belonging to relatives of the arrested former army chief Gen Sarath Fonseka.
He added an arrest warrant had been issued for Gen Fonseka’s son-in-law.
Gen Fonseka, who denies plotting to overthrow the government, led the army to victory against Tamil Tiger rebels, but fell out with the government last year and contested this year’s presidential election as the main opposition candidate.