The partly burnt school building
The school sheltering some 75 orphans comes amid an upsurge in violence between Buddhists and Muslims.
Police officers said the fire was caused by an electrical fault and not due to any criminal activity. Most of the children escaped unharmed.
It may be added that at least 40 people have been killed since 20 March and curfews have been imposed in some areas.
The violence follows more widespread clashes last year in Rakhine state between the Buddhist community and Muslim Rohingyas - a stateless minority group not recognized by the Burmese government.