The 38-year-old took 74 wickets in 71 one-day internationals and another 18 in 17 T20 matches for the island nation, shouldered the burden of the slow bowling attack following the retirement of spin great Muttiah Muralitharan in 2011.
"Every cricketer has to stop at the right time, I feel it's time to make room for fresh talent to be groomed with the 2019 World Cup in view," Herath was quoted as saying in a statement from Sri Lanka Cricket.
Arguably the left-arm spinner's best effort came at the 2014 World Twenty20, where he took five wickets for just three runs as Sri Lanka successfully defended a 120-run target in a must-win match against New Zealand en route to the title.
"Sri Lanka Cricket wishes Herath nothing but the best as he continues to play cricket in his chosen discipline, and in all future endeavours," the board said.
(Reporting by Sudipto Ganguly in Mumbai; editing by Patrick Johnston)
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