One member of the group suspected to have been involved in the shooting was arrested with a T 56 firearm and 20 bullets.
A special mission is underway to arrest another two suspects in connection to the incident.
Two individuals were shot by a group travelling in a vehicle around 8.40 this morning near the Babilagolla mosque.
One of the two individuals succumbed to injuries upon admission to the Kandy hospital.
The deceased was a 23 year old resident of Babilagolla area.