'Insurgents' opened fire on an army convoy as it was crossing a water-body on engine boats near Betcharra, not very far from the district town, government officials in Bandarban said.

As the army returned fire, a terrible shootout began in which more than one hundred rounds of bullets were fired.

The 'insurgents' used rocket launchers and bombs during the attack, said a reliable source.

Two seriously injured bullet-hit soldiers were flown on helicopter to the Combined Military Hospital, Chittagong.

It is not yet known how many of the insurgents were injured during the fight.

Later the army picked up seven people, suspecting their involvement with the attack.