Colombo  - At least 13 people, 12 of them schoolchildren, were injured when a bomb went off inside a van in north-western Sri Lanka, police said Friday.

Police in Kurunegala, 80 kilometres north-west of Colombo, believe the explosion was the result of a dispute between two private parties and not related to terrorist activities.

Residents panicked following the explosion, believing it was similar to bombings carried out by Tamil rebels during the country's 26-year civil war, police said.

The government declared victory over the rebel Liberation Tigers of Tamil Eelam in May, ending years of bloody conflict. (dpa)