The notorious gangster Wambotta and an accomplice were shot dead on Sunday night at Aswatte in Kosgama while travelling in a Dolphin van from Seeduwa to Avissawella, police said.
They said two others who were in the van which was driven by Wambotta were injured while two other gangsters were arrested.
The dead gangsters were identified as Kitulgamaralalage Ajit Wasantha alias Wambotta and Sumeda Priyankara Saman of Suriyawewa.
Sabaraganmuwa DIG Neville Wijesinghe said that in December Wambotta had been arrested at Avissawella by the police while the gang leader was with his mistress.
The DIG said since his release after two months in jail, Wambotta was residing at Avissawella till he was ambushed and killed by another underworld gang on Sunday.
Police said they found 60 spent cartridges at the scene of the crime.
Tangalle District Crime Bureau sources said some time ago three of Wambotta`s sisters were allegedly raped, tortured and killed by a rival family. This had led to a series of revenge killings with more than 25 of the rival family members being killed and their property destroyed.
Police said the gang led by Wambotta was also wanted for ten other killings and some 20 cases of extortion the most recent being the incident at Hambantota where a mudalali was abducted.