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Police spokesperson Ajith Rohana said 800 kilos (1,760 pounds) of cocaine was detected aboard a ship that arrived in the capital Colombo from Saudi Arabia's King Abdullah port.
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"The drugs were concealed in a container of timber and addressed to a company in India," Rohana said adding that they believed that the cargo originated from Ecuador.
He said the seizure was made following a tip off and with the help of anti-narcotic authorities in India, Saudi Arabia and Ecuador.
In June, Sri Lanka seized 90 kilos (198 pounds) of cocaine originating from Brazil.
Sri Lankan authorities have said that such large quantities of drugs suggest Colombo is being used as a transit centre.
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