The Vavuniya urban council has barricaded the place with barrels and also given it police protection.
Its closure is pursuant to a court order, after SLTB bus workers refused to park their vehicles at the newly-constructed bus stand.
The new bus stand, built at a cost of Rs. 20 million, was opened on 17 January last year, but closed down on the following day.
After a clash between SLTB and private bus workers, Vigneswaran ordered both to run the bus service according to a joint timetable.