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The ICC Board on Sunday lifted the suspension of Sri Lanka Cricket (SLC) with immediate effect.
SLC was suspended in November for being in serious breach of its obligations as an ICC member, in particular, the requirement to manage its affairs autonomously and ensure that there is no government interference in the governance, regulation and/or administration of cricket in Sri Lanka.
The Board have been monitoring the situation since the suspension and are now satisfied that SLC are no longer in breach of membership obligations.
Sports Minister Harin Fernando tweeted about the lifting of suspension.
He said an official statement would follow soon.
The ICC suspended Sri Lanka in November last year citing political interference when Fernando's predecessor Roshan Ranasinghe sacked the incumbent Shammi Silva administration and appointed an interim committee headed by the former captain Arjuna Ranatunga.
The court later reinstated Silva and Ranasinghe himself was fired by President Ranil Wickremesinghe.
The suspension meant Sri Lanka losing the right to host the ongoing U-19 World Cup.
ICC CEO Geoff Allardice visited Colombo early this month and met both Wickremesinghe and Fernando.
The government said it was working on a new sports act which would not allow political interference in sports administration.