Disaster management officials said two bodies were recovered with over 200 people still trapped in the central hill area of Haldumulla in the district of Badulla.
They said at least 7 lines of houses of Indian-origin tea plantation workers was destroyed by the landslide.
The area has been experiencing incessant downpour since yesterday.
Rail network also came to a halt in the upcountry line as earth slips blocked the movement of trains on railway track.