Asia Cup cricket called off over new pandemic threat
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The tournament was already held over from last year in Pakistan due to the pandemic.
"Due to the prevailing situation, it will not be possible to play the tournament in June this year," Sri Lanka Cricket chief executive Ashley de Silva told reporters.
He said the event may have to be put back until after the 2023 50-over World Cup because most teams had already planned schedules for the next two years.
De Silva said the Asian Cricket Council would soon make a formal announcement.
Coronavirus infections have spread rapidly across South Asia in recent weeks with many nations banning flights from the region.
Sri Lanka on Wednesday announced a 10-day ban on airline passengers coming into the country.
However, Sri Lanka's national team is currently in Bangladesh to play three one-day internationals.