A bus bomb exploded in Sri Lanka’s capital Colombo on Friday killing 26 people according to the latest reports.

The death toll of the terrorist attack rose on Saturday as two other victims died of their wounds at a local hospital, police said.

"Two more passengers died in hospital and the number of people remaining in hospital this morning is 64," a police spokesman said.

The bomb was detonated inside the overcrowded bus as the large vehicle was leaving the Piliyandala terminal. The blast was so powerful that it blew off the bus’s roof.

According to the police report based on witnesses, the bus was packed with office workers and schoolchildren returning from work or private classes.

Although the attack wasn’t claimed, government officials are blaming the militants loyal to the Liberation Tigers of Tamil Eelam (LTTE).

The bloodbath was condemned by Mahinda Rajapakse, Sri Lanka’s President.

The bomb set off inside the crowded bus came on the background of fierce fighting between the government troops and the LTTE in northern Sri Lanka.

The conflict between the Sri Lanka's pro-government forces and the LTTE has started 25 years ago. The rebels are fighting to obtain an independent state for the Tamil minority.

Two attempts of reaching peace were made, but after the last of them made during the peace-talks held in Geneva a year ago, the fighting has intensified.

At least 70,000 people were killed in the heavy fighting since the civil war began.