All those killed in the head-on collision along the A-9 highway were passengers travelling in the smaller vehicle, police said adding that three of the wounded were in critical condition.
The crash involved a van heading to Jaffna town and a bigger bus travelling in the opposite direction, police said, adding that an investigation was underway.
A police officer told AFP it was the worst crash in the area that he could remember.
About 3,000 people are killed in traffic accidents in the south Asian country annually.
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