A Buddhist temple is being constructed around the land that belongs to the Malaiyadi Pillaiyar Temple, in Muttur, Trincomalee, which is currently being occupied with a statue of the Buddha. The Buddhist temple, Kottiyarama Shri Badra Thaathu Raja Maha Viharaya is being constructed with the assistance of the Sri Lankan army and naval forces. 

In December 2021, a group of Buddhist monks placed and consecrated a Buddha statue surreptitiously at night. The following day, locals in the vicinity of the Pillaiyar temple protested the consecration of the statue, which led the Muttur Police department to remove the statue the very same day of the protest. 

Despite the ongoing protests, another Buddha statue was once again erected in the vicinity of the Pillaiyar temple, with the assistance of the army, navy, and the police. Following this incident, the construction of a Buddhist temple atop one of the surrounding mountains began. Construction has been conducted day and night by the Army and the Navy, and is approaching its completion.

Additionally, lands surrounding the Pillaiyar temple that belong to the Muslim and Tamil community have also been occupied for the use of the Buddhist temple with the assistance of the Survey Department. Locals continue to protest the construction and occupation by the Buddhist temple. The Malaiyadi Pillaiyar Temple has been a site of worship for Hindus living around the area, and also is frequently used by the public that travel through the Trincomalee - Batticaloa highway.