Ormidia, a small down near Dhekelia on the south-east coast, is in shock after a murder prompted a huge police response and manhunt.
According to state radio, shots were fired at a car painting workshop, when two Greek Cypriots initially argued and then one of the two pulled out a gun and killed the second.
Police are still searching for the shooter.
British Bases proceeded to cut off the Ormidia – Xylofagou road for vehicle traffic, in an attempt to locate the armed assailant.
The town is in the British Sovereign Bases area of Cyprus.