Sri Lanka navy denies releasing 37 Chinese sailors

COLOMBO Aug 6 (Reuters) - Sri Lanka's navy said on Monday it was still holding 37 Chinese fisherman in custody, contradicting a report by China's Xinhua state news agency that they had been released.

"They are in our custody and they have not been released yet," navy spokesman Kosala Warnakulasuriya told Reuters.

"They are being held in Trincomalee," he said, referring to the island nation's eastern port city. "They will appear in court tomorrow and they are still on the boat."

Sri Lanka's navy arrested the fishermen on Sunday night for fishing in Sri Lankan waters. They were aboard two trawlers off the country's east coast town of Batticaloa, Xinhua said. (Reporting by Shihar Aneez; Editing by Sophie Hares)