A Police curfew has been declared in Chilaw with immediate effect after tension erupted in the North Western town.
It will be lifted at 6 am tomorrow Monday 13 May.
Police say the situation is now under control.
The Police said that tension arose after an allegedly derogatory facebook comment was posted by a son of a shop owner in the town.
When the situation got more heated, soldiers guarding the bazaar to fire shots in the air to disperse a group of people who stormed into the town.
Several shops, a prayer center, and a mosque have reportedly been damaged and all the shops in the town are reportedly closed due to the situation, the Police said.
Several shops had also been attacked.
The person who posted the controversial Facebook comment has been arrested by the Police later.
Stern action can be taken against anyone spreading hate speech or fake news that can lead to communal violence under Emergency Regulations currently under force.
Anyone who is found guilty under these regulations may be imprisoned from 3 to 5 years