Nishantha Silva had been summoned to question on the incident last afternoon and the CID officers interrogated him.
He was arrested after the interrogation on the charge of abducting youth.
Meanwhile, the OIC of the Rathgama Police Station and 31 persons have been questioned in this regard and recorded statements from them.
The CID has confirmed that a group of police officers, who had come in a KDH van, had abducted the youths.
The CID is to question fifteen police officers including the OIC of the Special Crime Investigation Unit of the Southern Province on the disappearance of the two businessmen.
It is also reported that the Criminal Investigation Department is making arrangements to obtain statements from the family members of the missing persons and number of persons who had contacts with them.
A team led by the Criminal Investigation Department’ ASP has gone to Matara to inquire into the disappearance of two businessmen.
The CID has seized the van that had been allegedly used for the abduction and its owner too has been taken into custody.
Meanwhile, Senior DIG Ravi Wijegunawardena has been transferred to the Police Headquarters until the investigation is over.