The selectors made seven changes to the squad and have overlooked Yuvraj after the 35-year-old managed just 109 runs in his last six one-day global innings.
Fast bowlers Mohammed Shami and Umesh Yadav have also been left out, presumably rested.
Veteran batting all-rounder Yuvraj, Dinesh Karthik and Rishabh Pant have all been dropped - the former seemingly paying the price for a lean series against West Indies in June and modest returns in the preceding ICC Champions Trophy.
Meanwhile, Manish Pandey, Yuzvendra Chahal, Shardul Thakur, Axar Patel and KL Rahul have also made a come back into the team.
The All-India Senior Selection Committee has picked the India Cricket Team for the five-match One Day International series and only Twenty20 International against Sri Lanka.
India squad Virat Kohli (capt), Shikhar Dhawan, Rohit Sharma (vice-capt), KL Rahul, Manish Pandey, Ajinkya Rahane, Kedar Jadhav, MS Dhoni (wk), Hardik Pandya, Axar Patel, Kuldeep Yadav, Yuzvendra Chahal, Jasprit Bumrah, Bhuvneshwar Kumar, Shardul Thakur.
There were rumours that Virat Kohli wouldn't be playing the ODI series but the Indian captain put all those to rest on Friday. The second and third matches will be played at Pallekele on 24 and 27 August followed by the final two games at Colombo on 31 and 3 September. He last played an ODI against New Zealand in October 2016 and has now regained his spot in the national team.