Police have recovered nearly 20 petrol bombs during search operations carried out in the Kandy district.
Defence sources added that no major violent incident had been reported in Kandy in the last 36 hours.
Normalcy is fast being restored and people are now coming to streets to assess the damage caused by the clashes, they added.
This comes in the wake of the efforts by the government to assess the financial loss caused by anti-Muslim riots in Sri Lanka's hill capital.
Over 80 people currently remain in Police custody and some of them have been detained by the Terrorist Investigations Division (TID) under emergency regulations.
In addition to the financial damage caused by attacks, the country's tourism and hospitality industries also suffered due to cancellation of travel plans.
The loss of income suffered by the hospitality industry is yet to be assessed.