The body of 34-year-old transgender man was found lying in the centre of the Dambulla town last morning.
Police said they had been notified of the death in the early hours of the morning by a group of people who had spotted the body.
Police believe the man was beaten to death; several clubs that were used in the killing were seen around the area.
Furthermore, police said, pools of blood, a watch – believed have belonged to the victim – and an umbrella was also found in the vicinity.
Initial investigations reveal the man – identified as Sanath Kumara – would dress as a woman and frequent the town in the late hours of the night.
His sister told Police that she had received a call on her mobile phone at around 3 a.m. that day, which told her of her brother’s death.
She said she had not recognized the voice on the phone, but said the caller had verbally assaulted her before hanging up the phone.
Dambulla Police, led by Police Inspector Sampath Wickremeratne, is handling investigations.