Emergency in Sri Lanka: The government sent troops to the Kandy district and imposed curfew.
The decision comes, after a curfew was reimposed on Monday in two police divisions of Kandy district till Wednesday morning following the tense situation.
Violence erupted on Monday following which police imposed curfew in the Theldeniya area.
Cabinet spokesman Rajitha Senaratne said the government has chose to take stern action against those instigating violence through social media.
Mobs set fire to Muslim-owned businesses and attacked a mosque in the east of the country.
Some Buddhist nationalist have also protested against the presence of asylum seeker Rohingya Muslims from Myanmar in Sri Lanka.
Muslims in Sri Lanka are generally known as Moors are the minority ethnic group comprising 9.3% of the country's total population.
In the past, religious and ethnic violence had turned deadly in Sri Lanka, where Muslims account for 10 percent of the 21 million population, and Buddhists Sinhalese make up almost 75 percent.
Analysts say the government has been alarmed by the speed with which the trouble spread in two districts of Kandy and sought to contain it through the imposition of emergency.
Muslim homes, businesses, and mosques were badly damaged in riots yesterday triggered by the death of a Sinhalese man at the hands of a mob last week. The attacks followed reports that a Buddhist man had been killed by a group of Muslims.
President Sirisena and Prime Minister Ranil Wickremasinghe have promised to protect minorities, but attacks against Muslims have continued while mostly Muslim-owned properties have been gutted and looted by organized extreme Sinhalese mobs.
Commenting on the incidents, the National Peace Council (NPC) said: 'Incidents of violence against the Muslim and other minority communities are both political and systemic.
The statement released in Tamil and English, called on the government to ensure accountability and expressed further concern at reported police complicity in the violence due to their inaction.
Tamil Civil Society organisations across the North-East of Sri Lanka have unequivocally condemned recent incidents of anti-Muslim violence that occurred earlier this week.