Daham Sirisena, the son of Senior Minister Maithripala Sirisena is alleged to have brandished a gun and threatened UNP Municipal Council member Kris Balathazaar following the annual Royal Thomian cricket match, on Saturday.
Balthazaar had immediately called 119, and complained.
However, it is learnt that the UNP member is now seeking mediation and is not pursuing action.
The Police were unavailable for comment.
The incident had reportedly taken place in full view of the revellers, with the son of the Minister bringing in his bodyguards with defenders prior to taking out a gun.
The son was involved in a major ruckus last year where he had reportedly assaulted the son of DIG Ravi Waidyalankara who was hospitalised.
The incident was also brought to a close with no action against the son.