Foreign Minister Julie Bishop says Sri Lanka should be praised for its efforts in moving on from its three-decade long civil war.
Ms Bishop is in the Sri Lankan capital for a meeting of Commonwealth foreign ministers, ahead of the Commonwealth Heads of Government Meeting (CHOGM) starting on Friday.
The minister - who is heading to India - met with Tamil members of parliament at Australia's high commission, as well as Sri Lanka's foreign minister.
The leaders of Canada, India and Mauritius - the next host of CHOGM - have boycotted the summit over Sri Lanka's continuing violation of human rights and lack of action over the rape, torture and killing of civilians in the final days of the civil war.
Rights advocates have accused Australia of talking down human rights concerns so as not to jeopardise cooperation with Sri Lanka over tackling people smuggling.
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Ms Bishop said the fact that Sri Lanka was hosting CHOGM was to the country's credit.
"They put themselves out there on the world stage," she said.
"They had their detractors and they've been prepared to face up to that by holding an international meeting of this stature.
"The cooperation we have with the Sri Lankan government over people smuggling is the kind of cooperation we want from all countries."
Ms Bishop said the Tamil MPs had raised concerns about "what is happening in the north" of the country.
There are reports Tamils are being victimised and falsely arrested by Sri Lankan authorities. The minister said some Commonwealth nations had taken decades to recover from civil war and they should be encouraged in their work, not lectured or embarrassed by other nations.
"We are all not perfect," she said.
Ms Bishop backed a plan by British foreign secretary William Hague, who she met on the sidelines of the summit, for an independent investigation into sex crimes.
The minister will visit New Delhi and Mumbai for talks with government and business leaders starting on Friday.
Ms Bishop said India was an "important strategic partner" for Australia.
Australia is working on a safeguards agreement with India which, if signed, would open the way for the sale of uranium.
