SLC board was recently suspended by Sports Minister but reinstated by a court order.
ICC board made the decision in response to what it perceived to be excessive government interference in SLC administration, which ended in the dissolution of the country's cricket board.
"The ICC Board met today and determined that Sri Lanka Cricket is in serious breach of its obligations as a 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 conditions of the suspension will be decided by the ICC Board in due course,” ICC said in a statement.
The ICC Board is set to meet on November 21, after which the future course of action is expected to be clearer. The ICC U19 World Cup 2024 is scheduled to be hosted by Sri Lanka in January and February next year.