Despite calls for a ceasefire, Sri Lanka's prime minister said Thursday that government forces will not halt their offensive against separatist Tamil Tiger rebels.

Canada, Britain and the U.S. have called on both sides to declare a ceasefire to allow civilians to escape the conflict zone.

According to the United Nations and other aid agencies, about 250,000 civilians are caught in the war zone and the death toll is believed to be in the hundreds.

Government forces have been battling the Liberation Tigers of Tamil Eelam (known as the Tamil Tigers) for 25 years. The group has been fighting for a separate homeland for Sri Lanka's minority Tamil population.

About 70,000 people have died during the campaign, which has escalated in recent months.

At present, the Tamil Tigers have been pushed into an 85-square-kilometre section of coastal land and appear on the brink of defeat.

"Our forces have now surrounded the last stronghold of the terrorists. Our troops are challenging the Tigers waiting in front of their den," Prime Minister Ratnasiri Wickremanayake told Parliament on Thursday.

Wickremanayake describe the offensive as a "humanitarian operation" that will rid the country of terrorism. He also said it will free Tamils who have been oppressed by the rebel group for decades.

"The government is not prepared to stop this humanitarian operation. No force can stop this operation. Government forces have already achieved significant victories against the terrorists," he said.

"We are ready to accept anyone who will embrace democracy by giving up arms. We have said that from the beginning," he said.

David Poopalapillai, of the Canadian Tamil Congress, said the Sri Lankan government is trying to "wipe out the Tamils."

"They were not interested at all to solve this political dialogue so for the last 60 years this conflict has been raging in Sri Lanka," Poopalapillai told CTV's Canada AM from Toronto on Thursday.

He said Tamils fought non-violently for the first 35 years and have used armed conflict for the last 25 years.

Poopalapillai wants Canada to get involved more deeply and initiate political dialogue between both sides.

Liberal Foreign Affairs Critic Bob Rae said Thursday that Canada has been slow to get involved.

"The government of Canada has not been in the forefront in a way in which I think many Canadians would like," Rae told CTV's Canada AM.

"We've had a long history of engagement in Sri Lanka but more recently, under the Harper government, much less so."

Rae said there's no military solution to the problem but rather only a political one.

"It's very clear right now that if the military effort continues in the way in which it's been set out there will be enormous civilian casualties and tremendous loss of life," he said.

Late Wednesday, Canada announced $3 million in emergency humanitarian aid for civilians caught in the conflict in the country's Vanni region.

The aid consists of a $1 million grant to the International Committee of the Red Cross, and $500,000 grants to each of Oxfam Canada, Medecins Sans Frontieres, World Vision, and CARE Canada.

Earlier Wednesday, Canada's Foreign Affairs Minister Lawrence Cannon called for an immediate ceasefire "to allow full, safe and unhindered access; the evacuation of the sick and wounded; and the delivery of much-needed humanitarian assistance to civilians."

Also Wednesday, Tamils held demonstrations across Canada and around the world to protest conditions for civilians caught in the crossfire and put pressure on governments to intervene.

With files from The Associated Press