Police, STF, Army and CID personnel are deployed, also to establish security in the area within the next 24 hours.
The government has instructed the authorities to arrest the perpetrators and produce them before the law.
Religious leaders had a meeting yesterday to discuss enlightening the people against this conspiracy.
Police say the persons who spread falsehoods are being arrested.
The persons responsible
An incident between a lorry driver and a group in a three wheeler has been blown out of proportions to make it into a clash between communities and those responsible have been identified, said cabinet spokesman Rajitha Senaratne.
Among them are two MPs, two Pradeshiya Sabha members and a Buddhist monk from a newly-formed party, a secretary of an MP and the district organizer of a party, he told journalists yesterday.
Troublemakers transported from outstations
Certain persons had provided vehicles to transport the troublemakers, who are outsiders, to Digana, Theldeniya and Kandy areas, said the minister.
The culprits will be dealt with irrespective of their positions, he said, adding that security is being restored in Kandy.
Bribed to provoke racism, sling mud
Senaratne also said an organized group had bribed persons to provoke racism, sling mud at the government, the president and the prime minister.
A police curfew remains in force in Kandy, with three teams led by DIGs and comprising SP being deployed to conduct investigations.