The All Island Canteen Owners Association says operations at several restaurants have resumed following the distribution of gas cylinders to the market.
President of the Association Asela Sampath said around 80 percent of restaurants were preparing to close down as a result of the gas shortage.
Sampath claimed the restaurants were due to close by the weekend, adding there were no food packets at shops in Hulftsdorp as of last Thursday.
He added canteens at hospitals were also at risk of closing, adding they are essential for operations at hospitals.
Sampath noted the matter was resolved by promptly inspecting a ship carrying gas, which was held at the port, and releasing the stocks to the market.
He said as a result restaurants in Colombo that were going to close have resumed operations.
He added however there is still a gas shortage in rural areas.
Asela Sampath said Court ordered gas companies to issue gas cylinders that are up to the set standards, adding concerns have arisen in this regard.
He said however with the distribution of gas, concerns relating to the restaurant industry have been resolved to a certain extent.