Rugby's world governing body said on Wednesday it has suspended Sri Lanka and banned it from all tournaments until the island's government ends "interference" in the game's administration.
The decision was taken in response to "concerns about the governance of Sri Lanka Rugby and a breach of the World Rugby Bye-Laws relating to political interference", World Rugby said in a statement.
Sri Lanka sacked an elected body early last year and Sports Minister Roshan Ranasinghe appointed his nominees to administer the local body in April.
Ranasinghe's appointments are being challenged in court.
"The immediate priority is to work with all of the relevant stakeholders to resolve the governance issues," World Rugby said.
"A resolution of these issues will enable Sri Lankan athletes and officials to participate in upcoming matches and tournaments in Asia."
There was no immediate comment from Sri Lanka's Sports Ministry.
Rugby is the second-most popular game in Sri Lanka after cricket, with the South Asian island nation ranked 46th out of 190 rugby-playing countries.