Overnight curfew was imposed in several areas, around 80 km north of Colombo as mobs had gathered to target the community in wake of Easter Sunday attacks.
The police curfew imposed in Chilaw, Kuliyapitiya, Bingiriya and Dummalasuriya has been lifted since morning and the situation is under control.
Earlier, police arrested a group of men for allegedly attacking Muslim-owned businesses but a mob gathered outside police station to demand the release of arrested men.
A police spokesman said curfew was imposed to control the situation. Social media sites were blocked for the third time since Easter attacks for preventing rumors to spread.
Hate crimes has been on the rise against Muslims following Easter Sunday attacks which killed over 250 people including 45 foreigners.
An area in Negombo faced similar attacks last week while several social media posts are in circulation calling for boycott of Muslim businesses.
Political and religious leaders have called for calm saying terrorists have no religion and majority of Muslims in the country are opposed to such acts.