State television broke into its regular programming to announce Prabhakaran's death, and the government information department sent a text message to cell phones across the country confirming he was killed along with top deputies, Soosai and Pottu Amman.
The announcement sparked mass celebrations around the country, and people poured into the streets of Colombo dancing and singing.
Prabhakaran's death has been seen as crucial to bringing closure to this war-wracked Indian Ocean island nation.
If he had escaped, he could have used his large international smuggling network and the support of Tamil expatriates to spark a new round of guerrilla warfare here. His death in battle could still turn him into a martyr for other Tamil separatists.
Prabhakaran's body was reportedly recovered from an ambulance that troops destroyed as it was speeding out of the war zone Monday morning.
The 54-year-old leader was reportedly ambushed and shot dead while trying to breach the tight security cordon as the Lankan Special Forces closed in on the last of the LTTE fortifications.
Sri Lanka's State television broke the news, in which military spokesman Brigadier Udaya Nanayakkara confirmed Prabhakaran's death. He said 250 Tamil Tigers were killed overnight and that all territory was now in the hands of the Sri Lankan army.
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