Dassanayake was called from the US where he was following a Navy course, and was interrogated for around five hours, said the police media spokesman.
The CID has found in the course of their investigations that the Navy too, was linked to the disappearance of the youths.
A court case is also under way regarding the abduction and disappearance of 28 youths during the 2008-09 period.
A suspect in these disappearances, Navy officer Sampath Munasinghe alias Navy Sampath, has been in remand custody for more than a year.