COLOMBO, April 26 (Xinhua) -- Sri Lanka's special forces were engaged in a severe gun battle with suspected terrorists in Kalmunai city, in the Eastern Province on Friday evening, the military said.

In a statement, the army said a combined team of Security Forces including the Army came under fire when they were proceeding to search for a suspicious location, which produces suicide bomb kits and explosives.

A group of five to six terrorists began firing at them, when the forces were approaching.

The military said a shoot out was still underway.

According to local media, immediate police curfew has been imposed with effect for Kalmunai and surrounding areas.

Earlier on Friday evening, the military said security forces recovered flags belonging to Islamic State, literature and some other objects from a house in the Ampara distict, also in the east, which is said to be the terrorist organization's place for oath-taking.