The 25-year-old bowler represented Sri Lanka in a Test match against New Zealand as a teenager in 1998 but has not been capped since due to his poor performance.
But Bandara has recently had several good matches representing the Sri Lanka 'A' side and in English county cricket playing for Gloucestershire.
Uncapped left-arm spin bowler Sajeewa Weerakoon has also been included in the 20-man pool after his impressive performances for Sri Lanka 'A' in four-day matches againstSouth Africa 'A,' and in the current tri-nation limited-over series against the New Zealand and South African second-string sides.
Bandara has taken 233 first-class wickets in 89 matches, while Weerakoon has taken 360 wickets in 88 matches at the same level.
Left-arm seamer Nuwan Zoysa who was sidelined from injury also finds a place in a six-man pace brigade named in the squad.
Sri Lanka will play in seven limited-over matches against India starting Oct. 25, followed by three test matches.
Marvan Atapattu (captain), Sanath Jayasuriya, Mahela Jayawardene, Kumar Sangakkara, Tillakaratne Dilshan, Thilan Samaraweera, Upul Tharanga Russel Arnold, Avishka Gunawardena, Muttiah Muralitharan, Rangana Herath, Dilhara Fernando, Malinga Bandara, Upul Chandana, Chaminda Vaas, Lasith Malinga, Sajeewa Weerakoon, Farveez Maharoof, Nuwan Zoysa and Dilhara Lokuhettige.