The incident had occurred when the train plying from Colombo to Beliatta collided with the car.
Eyewitnesses said the car stalled in the middle of railway crossing near Koggala Air Force camp.
Police added that the 80 year old Yapa Mudiyanselage Sumanathilake and 30 year old Amesh Eranda de Silva were returning home following a visit to a private hospital when the accident occurred.
The police pointed out that the car had dragged along 400 meters following the impact.
Residents with difficulty removed the bodies of the deceased trapped within the vehicle.