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.
Bus accident kills 18 in China: CCTV
A police officer told AFP it was the worst crash in the area that he could remember.
Last month, the government proposed significantly raising the average traffic fine of 500 rupees to 25,000 rupees ($166) in a bid to reduce the number of accidents on Sri Lankan roads.
About 3,000 people are killed in traffic accidents in the south Asian country annually.
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