He was India captain Rohit Sharma's opening partner in the home T20 series against Afghanistan earlier this year but his place looked under threat as he struggled for runs in the IPL
"Following the Rapid Antigen Tests conducted ahead of the match on Tuesday morning, India all-rounder Krunal Pandya was found to be positive. The medical teams have identified eight members as close contacts," BCCI said in a statement.
The teams will now play the remaining two fixtures of the three-match series on consecutive days, with the third match also to be played in Colombo. India won the first game by 38 runs in Colombo on Sunday.
The positive test could give Indian batsmen Prithvi Shaw and Suryakumar Yadav a nervous wait as they were picked for India's Test series against England and were slated to travel at the end of the Sri Lanka tour.