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The landslide occurred early morning Wednesday after heavy monsoon rains in the tea-rich area of Haldummulla. The area has been battered by heavy rains for weeks.
The government said it recovered 10 bodies but that hundreds are still unaccounted for. More than 120 homes were swept away, it said.
More than 500 troops and volunteers who were dispatched to the area along with heavy machinery were forced to suspend their rescue operations as nightfall approached.
Dozens of children have been moved to two relief camps located a safe distance from the disaster zone.
Officials said they feared with constant rains hammering the area, the likelihood of more landslides was high.
Source: Agencies