The fire at Salawa Army Camp, Kosgama, Avissawella has been brought under control.
People living away from a 1km radius were advised to return to their homes.
The fire broke out at the warehouse of the camp yesterday at around 6 p.m. People living within a 6km radius from the camp were asked to leave for safety.
Unexploded shrapnel and shells can be seen scattered in proximity to the camp.
The army is carrying out inspections.