MELBOURNE: Two Sri Lankan men, facing terrorism charges for allegedly belonging to and financially supporting the LTTE, have been denied bail by a court here.

Aruran Vinayagamoorthy, 32, and 36-year-old Sirarajah Yathavan were arrested last week after police raids.

They have been charged with belonging to and financially supporting the Tamil Tiger rebel group.

Police allege the men transferred money into overseas bank accounts and bought equipment in Australia that could be used to make bombs.

But their lawyer said there was no evidence they supported the group after 2005, when police first interviewed them.

The magistrate has denied the men bail, saying they have not proven exceptional circumstances.

Opposing the bail plea, the prosecution said the men were a flight risk and police would not be able to extradite them from Tamil Tiger territory in Sri Lanka.

The two return to court in July.