According to the FT, McClean's body has been identified by friends with whom he was travelling and officials who have spoken to them said he is believed to have been attacked by a crocodile.
It's been reported the 24-year-old was staying with friends in the south east of the island.
McClean, who graduated from Oxford with a first class honours degree in French, had worked for the newspaper for two years - his first job following his graduation. "Horrible ... They are 90% sure it was a crocodile but a couple of the guys said there was quicksand in the lagoon".
Fawas Lafeer, owner of Safa Surf School, said local fishermen saw McClean being "dragged into a river" by a crocodile.
The victim, Paul McClean, along with a group of his friends was on holiday in Sri Lanka and had visited the beach in Panama.
Journalist killed by crocodile near Arugam Bay
Witnesses told how Mr McClean was seen frantically waving his hands as he was snatched from the bank.
He said: "We are liaising closely with his family and the Foreign and Commonwealth Office and offering the FT's assistance".
"We are in touch with them, doing all we can to help during this hard time".
Navy divers found his body partially buried in mud in an area known locally as Crocodile Rock.
"Crocodiles in Sri Lanka live only in the fresh, back waters of the jungle". There is a river connected to Elephant Rock, and he went in the river. A British tourist died in a suspected crocodile attack at a popular surfing spot in the country. Authorities often warn residents and tourists to steer clear of marshy areas, especially during monsoon season.
At the time of his death, McClean was working on the fastFT desk. He was a great kid, a fan of Everton FC, super bright.More news: Florida nursing home deaths increase Irma's toll, and raise questions