The ruling against Chee Soon Juan, secretary-general of the opposition Singapore Democratic Party, and his sister Chee Siok Chin, a member of the same party's executive committee, was made at a closed-door hearing on Tuesday, the sister said.

The court said the opposition leaders defamed Singapore's Prime Minister Lee Hsien Loong and his father, former Prime Minister Lee Kuan Yew, by publishing articles in their party's newspaper that linked corruption at the nation's largest charity to the way the country is run, Siok Chin said.

The hearing proceeded even though the Chees had asked for an adjournment as their lawyer, M. Ravi, was unable to attend due to health reasons, she said. They have one month to appeal the decision.

"The ruling came as no surprise," Siok Chin said. "We're not sure yet if we will appeal, there are costs in doing so and we'll have to think hard."

Ruling party leaders have successfully sued several opposition politicians and journalists for defamation over the years. They say they sue to protect their reputations.

But domestic and international critics - including the US State Department and London-based rights group Amnesty International - have accused Singapore's rulers of using defamation lawsuits to stifle opponents.

Authorities tightly restrict media and political speech in Singapore, one of the region's economic powerhouses.

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