It is the first time Sri Lanka has recorded remarkable gains in the index.
The annual World Press Freedom Index for 2016 compiled by Paris based Reporters Without Borders and released on Wednesday ranked Sri Lanka 141st out of 180 countries.
Sri Lanka was ranked at 165 in the year 2015.
The RSF in its press freedom report said Sri Lanka freed itself of the reign of terror imposed by the former government and its allies by electing Maithripala Sirisena as president.
Furthermore the report said Tamil media, long a target of the authorities, including after the official end of the civil war in 2009, have seen a decline in harassment and hopes it will last.
According to the report Press Freedom has been well established in the European region with Finland ranked 1st in the index, followed by Netherlands, Norway, Denmark, New Zealand.
However the report said there was a deep and disturbing decrease in media freedom both the global and regional levels.