A spokesman for Povlsen, 46, confirmed to the BBC that Povlsen's children were killed in the attacks that took place in and around the nation's capital of Colombo.
According to the BBC, the family was visiting Sri Lanka for the holiday.
Povlsen, who is Denmark's wealthiest man, owns the fashion firm Bestseller and is the majority stakeholder in the online retailer Asos. He is also believed to be the largest private landowner in Scotland where the couple owns 11 estates and a castle, according to the Danish newspaper Berlingske.
The spokesman for Povlsen confirmed the family was vacationing in Sri Lanka. One of Povlsen’s daughters posted a photograph on Instagram of her and her two siblings next to a pool a few days before the attack.
The attack, which Sri Lankan officials are blaming on a militant group called the National Thowfeek Jamaath, was carried out by seven suicide bombers who attacked churches and hotels on Easter morning.