Sri Lanka, after being dismissed for a paltry total of 96 in their second innings, set a 317-run target for Pakistan.
In their chase, Sarfraz's men lost five quick wickets on day four as the captain partnered up with Asad Shafiq (112) to keep Pakistan's hopes alive.
However, day five saw Sarfraz crumble with Shafiq left to bat with the tail.
Sri Lanka seized the moment and kept dismissing the tail-enders to bring the match to an end, winning by 68 runs to wrap up the series 2-0.
This was Pakistan first home series loss in almost ten years. The last one came in 2007 against South Africa.
Also, with the win, Sri Lanka move to sixth in Test rankings, pushing Pakistan down to the seventh position.
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