The gunbattle began on Friday night after police tipped off soldiers to a suspected safe house near the town of Sammanthurai, where authorities said the militants detonated three explosions and opened fire.
At least three others were wounded in the attack, said police spokesman Ruwan Gunasekara.
He said that some of the dead likely were militants who blew themselves up in suicide bombings.
Earlier, the military said at least one civilian had been killed in the attack.
Raids and police curfews shut down areas of eastern Sri Lanka as Catholic leaders cancelled Sunday Masses indefinitely.
Officials also urged Muslims to stay home for prayers in an extraordinary call by the clergy to curtail worship as fear of more attacks plagued the island nation.
Pictures above: Sri Lankan naval soldiers clear the debris from inside of the damaged St Anthony’s Church in Colombo
Major General Aruna Jayasekara, the local military commander, said soldiers and police waited until daylight on Saturday to carry out further raids in Eastern Province given houses being built so close together.
Meanwhile, the military said security forces had recovered explosives, detonators, “suicide kits”, military uniforms and Islamic State group flags in the ongoing raids.
In the same area, police spokesman Mr Gunasekara said officers acting on information from…
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