The dashing right-hander, who scored a sizzling unbeaten 132 on his Test debut against the mighty Australians in Colombo in 1992, felt that the time was right to bow out from the game.
"Look, I must have made about 20 to 30 comebacks in my career but I don't want to drag my career on just for the heck of it. I thought that the time is now right to go," he said.
The diminutive batsman however, said he was open about serving Sri Lankan cricket in the future.
"I am willing to support the game of cricket in any other capacity through the experience I have gained all these years," he added.
Kaluwitharana played 49 Tests and 189 one-day games, including the 1996 World Cup final when Sri Lanka beat Australia.
His influence was perhaps greater in one-day cricket, when he regularly teamed up with Sanath Jayasuriya in a swash-buckling opening partnership.