The bus had been evacuated shortly before the explosion because passengers had spotted a suspicious parcel, military spokesman Brigadier Udaya Nanayakkara told AFP.
The rebel Liberation Tigers of Tamil Eelam (LTTE) have been blamed for a string of bomb attacks against public transport in recent months.
Reuters reports local TV showed the main body of the bus was still intact despite the explosion, although the rear portion had been damaged
Published by Mike Hitchen, Mike Hitchen Consulting