Bennet Rupasinghe was arrested last week on charges of threatening the brother of a suspect, now in custody, for carrying out an arson attack on the website's office here.
Magistrate court at Kaduwela turned down police's request for an extension of the remand and released him on bail of 10,000 Sri Lankan rupees.
Seeking Rupasinghe's immediate release, five media groups here in a joint statement raised doubts over the police action. Many journalists earlier this week also protested outside the court and termed him as a victim of police persecution.
New York-based Committee to Protect Journalists had also sought diplomatic pressure to brought on Colombo to free Rupasinghe.
The Lankaenews office was set on fire by an unknown group in February. A suspect Bhoothaya was arrested for the attack. Many reports of the Lankaenews website are believed to be anti-government.
Published 07 April 2011, 07:49 IST