Authorities had heightened security in the capital city and elsewhere because of the holiday on Monday.
The bus was traveling from Kandy, in central Sri Lanka, to Anuradhapura in north-central Sri Lanka, when the blast occurred about 7 a.m. local time (0130 GMT), police said. Authorities believe a device was planted on the vehicle.
It was not immediately known how many people were on the bus.
Dambulla is about 150 kilometers (about 90 miles) north of Colombo.
A renewal of fighting in the last month between the government and separatist rebels known as the Tamil Tigers has killed scores of people on both sides. The government withdrew from a 2002http://edition.cnn.com/2008/WORLD/asiapcf/02/01/srilanka.explosion/index.html
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