"Life is very difficult now," said Tamil paddy farmer S.Kanawry, who is sheltering at the school with his wife, mother and three children. He only managed to save a few provisions and his bicycle.

"My neighbours are all at the school. Yesterday it rained all day. We are relying on food from aid groups," he added, expecting to be stranded there for two weeks.

More than 270 homes in the area are submerged, officials said.

Displaced families queued up for medicine from doctors, many suffering from diarrhoea, while tractors towed water tanks to the school.

Roads around Batticaloa were impassable, submerged under muddy water. Nearby areas controlled by Tamil Tiger rebels were also badly flooded, officials said.

The northern province of Polonnaruwa, which also borders Tiger territory and boasts some of Sri Lanka's finest ancient ruins, has also been badly affected.

"There are approximately 120,000 people still displaced," said National Disaster Management Centre Director N.D. Hettiarachchi.

This week, 250,000 people fled their homes to escape the floods, but many later returned after floodwaters subsided in some areas.

"About 700,000 people have been affected overall, like people who live in coastal areas and can't go fishing or farmers who can't work," he said. "But the situation is not getting worse."

The Meteorology Department said more rain was on the way, but added it would not be as severe as earlier in the week.

Floods are common across Sri Lanka during the northeast monsoon from December to January, and strand tens of thousands of people each year. In May 2003, flash floods in the south of the Indian Ocean island killed 250 people and left 500,000 homeless.