A journalist attached to Lanka Business Online who barely escaped the tidal wave has reported seeing floating bodies.
"I can see one floating body a few feet away, but the water seems to be have gone down about five inches in the last few minutes," Niranji Jayewardene said, taking refuge on a parapet wall.
Residents in Wellawatte, a suburb of Colombo have reported rising sea levels. So far no estimates of the dead has been released.
Initial reports indicate that areas around the island ranging from Trincomalee, Yala, Galle and Kaluthara are affected.
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The southern coastal regions are the main tourist resort areas for the island nation. In Thailand the resort of Phuket has also gone under, after the tidal wave hit the country.
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An earthquake off the coast of Indonesia measured at 8.5 on the Richter sca