Heavily armed security forces patrolled the streets after rioting that followed the bomb attack, police said, adding that investigations suggested that Tiger rebels were responsible.
"Reports indicate that the LTTE (Liberation Tigers of Tamil Eelam) executed this heinous crime using a powerful explosive device," the government said in a statement.
There was no immediate comment from the Tigers.
The bomb was the second of two blasts in the district on Wednesday.
Two constables were killed and two others wounded when their truck was hit by a mine on Wednesday morning.
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At least 50 other people were injured in Trincomalee in the second blast, which sparked rioting by mobs of the majority Sinhalese community, local officials said.
Police said the curfew was extended to maintain law and order.
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Seven shops were torched and several vehicles damaged in the rioting, they said.
The government sent Industrial Development Minister Rohitha Bogollegama, who is also a government peace nego