Candasaly is only five miles from Candy, and the road good. When half way from hence to this capital, we passed a heavy Dutch gun which the enemy were bringing up to the battery on the river. Our advanced guard had scarcely got within range of a temple which is situated on a hill above the town of Candy, when they sustained a volley of musketry; a few minutes afterwards I could plainly perceive the enemy flying through the streets in great confusion. It was now evident that none of the other divisions had arrived. After detaching Lieutenant Rogers with a party of Sepoys to occupy the heights commanding the town, our troops once more took possession of the capital, which they found, as usual, entirely deserted by its inhabitants. The palace being in the most favourable situation for resisting any immediate attack, I took possession of it, and looked with great anxiety for the arrival of the other detachments. 7.--This day passed without any intelligence of our friends. Towards evening, a Malay officer and some soldiers formerly in our service, but forced into that of the Candians after Major Davie's surrender, arrived amongst us, and informed me, that a fortnight before a rumour had prevailed of six English divisions having entered the Candian territory; that many of his countrymen had accompanied the Candians to oppose these divisions, but had returned without having seen an enemy. It was generally believed that these divisions had been driven back. He added that the Candians were in great force in the neighbourhood, and delayed their attack only until the climate should begin to take effect upon us; and that the firing which Lieutenant Povelary had taken for that of our columns on the morning of the 6th was a rejoicing at our embarrassed situation, which seemed to them to admit neither of advance nor retreat, but to lead inevitably to surrender, and consequent massacre. I was greatly at a loss what to make of this statement. The officer's character I knew to be respectable; and their report of the number of divisions corresponded exactly with the fact. 8.--Early this morning detached Lieutenant Povelary with a party to the top of the hills, to ascertain whether a camp, or any part of our troops, could be discerned. He brought no tidings of them.