The Colombo Crimes Division has launched an investigation over the commotion reported in Mayura Place, Wellawatte at around 10.45 last night.
Police media spokesman Superintendent of Police Ruwan Gunasekara said the incident was reported between a group of construction workers residing in the area and residents of an adjacent housing complex.
He noted that investigations revealed the dispute was caused by individuals who were under the influence at the time of the incident.
SP Ruwan Gunasekara said Police had to fire tear gas to disperse the crowd as over 150 persons had been involved in the dispute.
Nine persons including a Police Sub Inspector attached to the Wellawatte Police had been injured in the clashes.
Police said nine vehicles including seven three wheelers, a motor bike and a car had been damaged in the clashes.
SP Ruwan Gunasekara said one suspect has been arrested over the incident while investigations are underway to arrest the remaining suspects.