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The accident occurred on Thursday night in the mountainous Ella area, located approximately 130 kilometers (81 miles) east of the capital. In addition to the fatalities, 16 others on board were injured.
The group was returning home after a holiday in the cooler hills when the bus collided with another vehicle, crashed through guardrails, and fell over the side of the cliff.
This incident marks the worst bus crash since May, when 23 passengers lost their lives in a similar accident in Kotmale.
Sri Lanka is known for its winding roads, which are considered among the most dangerous in the world. The island nation, home to 22 million people, experiences an average of 3,000 road fatalities each year.